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1 1 (November 28, 2017)

handle is hein.crs/govcivu0001 and id is 1 raw text is: Researh Sevice The Opioid Epidemic and the Labor Force November 28, 2017 Some Members have expressed strong concerns about the societal costs of the opioid epidemic, including its potential to adversely affect the U.So economy. Efforts to quantify the annual economic costs of opioid abuse and dependence return estimates in the tens of billions, of which workforce losses-decreased productivity, missed days of work, and premature death-account for a substantial share. Opioid abuse could further generate labor force costs-directly or indirectly-if it affects labor force participation decisions and unemployment. A small body of research has explored and identified correlations between opioid abuse and these indicators, but it remains unclear whether the opioid epidemic is a driver or an outcome of recent workforce trends, or an indicator of other underlying factors. Opioids and Non-Participation in the Labor Force The labor force comprises employed workers and non-employed workers who are actively seeking and available for work (i.e., the unemployed); persons who are neither working nor searching for work are said to be out of the labor force. Policymakers view the labor force participation rate (LFPR) as an important economic indicator because the labor force is a key determinant of economic output. For this reason, the decades-long decline in the LFPR of prime-age (e,, ages 25-54 years) men and more recent drops in prime-age women s LFPR have raised questions about the country's ability to reach its full economic potential. Labor force participation decisions are complex, and research identifies several factors as potential contributors to these LFPR patterns including fewer jobs for less-educated workers, poor health and disability, employment barriers for a growing population with criminal records, and increased disincentives to work; Krause and Sawhill provide a recent review of this research. While generally not viewed as a primary driver of recent workforce trends, some have pointed to the opioid epidemic as one contributor to recent declines in LFPRs. For example, during the question-and- answer portion of her July 2017 testimony to the Senate Committee on Banking, Housing, and Urban Affairs, Federal Reserve chairwoman, Janet Yellen cited the epidemic as a potential factor (among others) influencing LFPRs among prime-age men, referencing recent research on the increase in deaths of despair, including from drug overdose, among some populations. Data on drug-related deaths and emergency department visits, and opioid prescriptions appear to support this viewpoint. Figure 1 shows that the rate of drug related deaths (of which opioids are the main cause) rose markedly for prime-age persons over the 1999-2015 period, as the LFPR for this group declined by more than 3 percentage points. Work by Hollingsworth et al. shows a 39.5% increase in emergency Congressional Research Service https://crsreports.congress.gov IN10828 CRS }NStGHT Prepaed for Membeivs and Cormiiee ;s of corlw-e~ss

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