Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Why is unemployment duration so long?
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.
Cite this item
Robert G. Valletta & Katherine Kuang, "Why is unemployment duration so long?"
, Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 03, 2012.
This item with handle RePEc:fip:fedfel:y:2012:i:jan30:n:2012-03
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