NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Labor Market in the Great Recession

Michael W. Elsby, Bart Hobijn, Aysegul Sahin

NBER Working Paper No. 15979
Issued in May 2010
NBER Program(s):   EFG   LS   ME

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.

download in pdf format
   (432 K)

email paper

This paper is available as PDF (432 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w15979

Published: Michael W. L. Elsby & Bart Hobijn & Aysegul Sahin, 2010. "The Labor Market in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 1-69. citation courtesy of

Users who downloaded this paper also downloaded these:
Hoynes, Miller, and Schaller w17951 Who Suffers During Recessions?
Rothstein w17966 The Labor Market Four Years Into the Crisis: Assessing Structural Explanations
Herkenhoff and Ohanian w17313 Labor Market Dysfunction During the Great Recession
Eaton, Kortum, Neiman, and Romalis w16666 Trade and the Global Recession
Burda and Hunt w17187 What Explains the German Labor Market Miracle in the Great Recession?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us