Monday, December 14, 2009

Unemployment and Economic Recovery

From Summary

Even though the economy seems to be growing again, it may be a while before the unemployment rate begins to decline, and it may even continue rising for some time after the resumption of sustained economic growth. The unemployment rate is generally a lagging indicator, meaning that its ups and downs happen some time after the ups and downs of other broad indicators of economic activity. Unemployment may not fall appreciably when economic growth first picks up because some firms may have underutilized labor.

Source: Congressional Research Service

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