The labor market in the great recession

Michael W L Elsby, Bart Hobijn, Ayşegül Sahin

Research output: Contribution to journalArticle

144 Citations (Scopus)

Abstract

From the perspective of a wide range of labor market outcomes, the recession that began in 2007 represents the deepest downturn in the postwar era. Early on, the nature of labor market adjustment displayed a notable resemblance to that observed in past severe downturns. During the latter half of 2009, however, the path of adjustment exhibited important departures from that seen during and after prior deep recessions. Recent data point to two warning signs going forward. First, the record rise in long-term unemployment may yield a persistent residue of long-term unemployed workers with weak search effectiveness. Second, conventional estimates suggest that the extension of Emergency Unemployment Compensation may have led to a modest increase in unemployment. Despite these forces, we conclude that the problems facing the U.S. labor market are unlikely to be as severe as the European unemployment problem of the 1980s.

Original languageEnglish (US)
Pages (from-to)1-48
Number of pages48
JournalBrookings Papers on Economic Activity
Issue number1
DOIs
StatePublished - Mar 2010
Externally publishedYes

Fingerprint

Labour market
Recession
Great Recession
Labor market outcomes
Unemployment compensation
Emergency
Long-term unemployment
European unemployment
Labour market adjustment
Warning
Workers
Unemployment

ASJC Scopus subject areas

  • Economics and Econometrics
  • Business, Management and Accounting(all)

Cite this

The labor market in the great recession. / Elsby, Michael W L; Hobijn, Bart; Sahin, Ayşegül.

In: Brookings Papers on Economic Activity, No. 1, 03.2010, p. 1-48.

Research output: Contribution to journalArticle

Elsby, Michael W L ; Hobijn, Bart ; Sahin, Ayşegül. / The labor market in the great recession. In: Brookings Papers on Economic Activity. 2010 ; No. 1. pp. 1-48.
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