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 unemployed, and the availability of extended unemployment benefits. But the key explanation is the severe and persistent weakness in aggregate demand for labor.
Why Is Unemployment Duration So Long?
Rob Valletta and Katherine Kuang
Mon, 30 Jan 2012 15:00:00 GMT