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Thursday, September 26, 2013

Persistent Unemployment - The New Norm

http://viableopposition.blogspot.ca/2013/09/persistent-unemployment-new-norm.html

It's quite apparent, despite the Fed's assurances otherwise, that this recovery has been a particularly tough one if you are an unemployed or underemployed American.  This recovery has felt far different than most of the recoveries that many of us have experienced throughout the past few decades.  A recent study by the Brookings Panel on Economic Activity suggests that this may well be the new norm in their paper "Amerisclerosis?  The Puzzle of Rising U.S. Unemployment Persistence" and that the post-Great Recession economy is simply following a pattern that was established after the previous two recessions where the recovery in employment follows a prolonged and somewhat flattened shape rather than the more traditional "V" shape experienced in the 1950s, 1960s, 1970s and early 1980s as you can see in this graphic:

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