Why does the unemployment rate rise during a recession? Why have American markets declined recently despite solid economic growth figures? Why are wage rates higher in one competitive labor market than in another? In short, why do wage rates differ between markets?
During the recent recession, unemployment duration reached levels well above those of past downturns. Duration has continued to rise during the uneven economic recovery that began in mid-2009. Elevated duration reflects such factors as changes in survey measurement, the demographic characteristics of the...
Why does the unemployment rate rise during a recession? Why does the inflation-unemployment trade-off disappear in the long run? Why are wages so sticky downward, even during recessions? Why did the unemployment rate stay high for a long time after the recession of 2009? Why are i...
Barro argues the rate of unemployment in this Great Jobs Recession is comparable to what it was in the 1981-82 recession, but the rate of long-term unemployed is nowhere as high. He concludes this is because unemployment benefits didn’t last nearly as long in 1981 and 82 as it they do...
Stock and Watson correctly noted that the slow recovery in RGDP is partly due to a slowdown in labor force growth. However that doesn’t explain the sharp rise in unemployment, which is the distinctive feature of the recovery. In addition, it doesn’t really explain the slow growth in NGDP...
A holistic understanding of the federal funds rate involves knowing the Federal Reserve's dual mandate. Its monetary policy is geared toward two things. The first is maintaining maximum employment, also known as full employment. The Federal Reserve doesn't aim to zero out unemployment. The objecti...
However, economists do expect unemployment to rise and inflation to continue cooling. A weaker-than-expected consumer price index report or jobs report could send mortgage rates lower in the short term. The economy shows deeper signs of weakness. The probability of a recession in th...
NABE expects the nation's unemployment rate, now hovering near a 50-year low of 3.7%, to peak at 4% in 2024. In a statement on NABE's forecast, White House economic adviser Lael Brainard attributed the country's economic resilience to President Biden's policies, underscoring the strong inv...
It marked the first rate cut in over four years and signaled a shift in strategy aimed at bolstering the economy and preventing a rise in unemployment. Such changes in the federal funds rate can impact everything from mortgage and credit card interest rates to business investments and the stoc...
During the Great Depression of the 1930s, U.S. unemployment rose to 25% and millions stood in bread lines for food. The misery seemed endless. President Franklin D. Roosevelt decided to put an expansionary fiscal policy to work. He launched his New Deal soon after taking office. It created...