The November jobs report highlights a continuing labor market recovery, but one in which unemployment — especially long-term unemployment — remains high relative to recent recoveries (see chart). With inflation running below its 2 percent target, the Federal Reserve faces little if any danger of igniting unacceptable inflation by keeping interest rates low to encourage further job growth.
A recession is a significant decline in the size of the U.S. economy lasting more than a few months, normally visible in a variety of economic indicators. Economic stimulus policies aim to avert a recession or lessen its severity by boosting the economy in the short term. The unemployment insurance system helps people who have lost their jobs by temporarily replacing part of their wages, typically for up to 26 weeks.
- The Legacy of the Great Recession
Paul Van de Water
The Center examines the impact of changes in the economy on federal and state budgets, as well as the likely effectiveness of economic stimulus proposals. We also examine trends in employment and promote reforms to strengthen the unemployment insurance system.
December 19, 2014
Updated December 15, 2014
Revised December 10, 2014
Updated December 9, 2014
December 5, 2014
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