• The unusual duration of unemployment: The scars of the Great Recession

    12 days ago - By FRED

    The graph above shows the unemployment rate and the average duration of unemployment. It's well known that the unemployment rate is currently very low. However, the duration of unemployment since the Great Recession has never been longer.* What's going on?
    The graph below has an answer. The share of long-term unemployment is significantly higher than in any other post-WWII period. Indeed, those unemployed for more than 6 months still represent over 20% of the unemployed, after a peak of over 45% in 2011. This share increases after recessions, but the most recent recession was deeper and...
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