Unemployment rates remain high in most advanced countries. Many scholars have drawn attention to an apparent decoupling of unemployment increases from output declines during the Great Recession (e.g. IMF 2010, Cazes et al. 2011).
Jobs and growth are still linked (that is, Okun’s Law still holds)
Laurence Ball, Daniel Leigh, Prakash Loungani, 26 January 2013
US unemployment: Neither natural nor unnatural
Guillermo Calvo, Fabrizio Coricelli, Pablo Ottonello, 24 July 2012
The Great Recession in the US has been followed by high and persistent unemployment. Although output recovered its pre-crisis level, the unemployment rate is still above its pre-crisis level, a situation that is popularly called ‘jobless recovery’ (see Figure 1).
Figure 1. US jobless recovery
The case of the US jobless recovery: Assertive management meets the double hangover
Robert J. Gordon, 22 August 2011
High and persistent unemployment in the US has emerged as one of the most important macroeconomic legacies of the 2007-09 world economic crisis. While the decline of business activity in the US was no larger than in Europe, the US is an outlier in its outsized response of the unemployment rate to its decline of output (IMF 2011).
The Great Recession ended in May 2009: Evidence from unemployment and the stock market in the last fourteen recessions
Roger E. A. Farmer , 5 October 2009
A number of economists, including Chairman Bernanke of the US Federal Reserve, have declared that the current recession is very likely over (Robb, 2009), and two reporters for Forbes (Wesbury and Stein, 2009) have dated the end of the recession to May 2009.
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