Final answer:
The increase in women's labour force participation has been influenced by social demographic trends and higher education achievements, contributing to a rise in the natural rate of unemployment, not cyclical unemployment. This influx, beginning in the 1970s, changed the labour market dynamics, potentially affecting wages, employment, and unemployment until a new equilibrium was established.
Step-by-step explanation:
The rise in women's labour force participation is largely attributed to social demographic changes rather than economic downturns, such as recessions. As women have gained higher education and moved into high-skill jobs, their presence in the workforce has increased, bringing about a change in the natural rate of unemployment. This trend reflects a shift in the workforce's composition and an expansion of the labour pool rather than cyclical fluctuations tied to the economy's performance.
Starting around the 1970s, the United States saw a significant increase in the number of women entering the labour force. This shift was not caused by economic recession but rather by a change in societal norms and increased educational attainment among women. Therefore, rather than causing an increase in cyclical unemployment, the influx contributed to an increase in the natural rate of unemployment, which is the rate of unemployment that the economy typically experiences in the long run.
As women's labour force participation grew, the supply of labor increased. Assuming that wages are sticky in a downward direction and that initially the demand for labor equaled the supply at the current wage rate, the increase in labor supply would likely put downward pressure on wages, potentially leading to an adjustment period with changes in employment and unemployment levels until a new equilibrium is reached.