This report investigates potential reasons for the sharp decline in enrollments in teacher preparation programs in recent years and finds evidence that educator job losses resulting from the Great Recession were associated with diminished interest in teaching. Decreases in average teacher salary and the trend of what are termed "last in, first out" employment decisions were also associated with decreasing enrollment of prospective teachers in both traditional and alternative certification programs. As a result of these findings, the authors of this report conclude that teacher labor markets are more responsive to market conditions than once thought. Based on these findings, the authors recommend increasing teacher compensation, ending seniority-based layoff policies, and providing prospective teachers with relevant local labor market information in order to reduce shortages and prevent further declines in enrollment in teacher preparation programs.