BROWSE

Jobless Recovery

Definition

A jobless recovery or jobless growth is an economic phenomenon in which a macroeconomy experiences growth while maintaining or decreasing its level of employment. The term was coined by the economist Nick Perna in the early 1990s.

What is 'Jobless Recovery'

An economic recovery, following a recession, where the economy as a whole improves, but the unemployment rate remains high or continues to increase over a prolonged period of time. This effect may be a result of cautious businesses that add hours to existing employees in order to increase production capacity rather than hiring new workers.

Explaining 'Jobless Recovery'

An example of a jobless recovery occurred in the early 1990s. While the American recession from the late 1980s technically ended in the first quarter of 1991, the unemployment rate did not actually stabilize until the middle of 1992.


Further Reading


Has structural change contributed to a jobless recovery?
papers.ssrn.com [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …

Jobless recovery is no recovery: Prospects for the us economyJobless recovery is no recovery: Prospects for the us economy
papers.ssrn.com [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …

Labor market, financial crises and inflation: jobless and wageless recoveriesLabor market, financial crises and inflation: jobless and wageless recoveries
www.nber.org [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …

Jobless recoveries during financial crises: is inflation the way out?Jobless recoveries during financial crises: is inflation the way out?
www.nber.org [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …

The labor market consequences of financial crises with or without inflation: Jobless and wageless recoveriesThe labor market consequences of financial crises with or without inflation: Jobless and wageless recoveries
papers.ssrn.com [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …

Low‐wage single‐mother families in this jobless recovery: Can improved social policies help?Low‐wage single‐mother families in this jobless recovery: Can improved social policies help?
spssi.onlinelibrary.wiley.com [PDF]
The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change-the permanent relocation of workers from some industries to others …



Q&A About Jobless Recovery


Why might businesses be cautious about hiring new workers during a jobless recovery?

Businesses may be cautious about hiring new workers because they are uncertain about future demand for their products and services.

What is a jobless recovery?

A jobless recovery is an economic recovery following a recession where the economy as a whole improves but the unemployment rate remains high or continues to increase over a prolonged period of time.

When did the American recession from the late 198s technically end?

The American recession from the late 198s technically ended in the first quarter of 1991.

When did the unemployment rate stabilize during this period?

The unemployment rate stabilized in mid-1992.

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