Journal Article

Employment growth: cyclical movements or structural change?


Abstract: In judging the degree of slack in the economy, policymakers must determine the origin of any increase in the unemployment rate?specifically, how much of it is due to a cyclical slowdown (driven by the broader economy) as opposed to a structural realignment in production (driven by a shift in production from declining industries to expanding ones). The model developed in this article provides some insight into the sources and magnitude of structural change and its impact on the unemployment rate.

Keywords: Employment; Business cycles;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2009

Volume: 33

Issue: Q IV