Learn Before
  • Financial Crisis and The Great Recession

US Unemployment Rate Spike During the Great Recession

The Great Recession triggered a severe shock to the US labor market, causing the unemployment rate to double from 5% in 2007 to a peak of 10% in 2009. The recovery was notably slow, as indicated by the rate remaining at a high level of approximately 7% as late as 2013.

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Introduction to Macroeconomics Course

Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ

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Related
  • Recession and Increased Crime Rates

  • Severity of the Great Recession

  • US Unemployment Rate Spike During the Great Recession

  • Variety of Recession-Related Hardships in the US During the Great Recession (Figure 3.1)

Learn After
  • Consider the following data for a country's labor market during a major economic downturn: the unemployment rate was 5% in 2007, rose to a peak of 10% in 2009, and remained elevated at 7% as late as 2013. Based on this information, which statement best analyzes the nature of this employment shock and its aftermath?

  • Interpreting Labor Market Recovery

  • Analyzing a Labor Market Shock

  • Following the peak of unemployment at 10% in 2009, the US labor market experienced a rapid recovery, with the unemployment rate returning to its pre-downturn level of 5% within the next two years.

  • During the severe economic downturn that began in 2007, the US unemployment rate rose dramatically, reaching a peak of approximately ____ percent in 2009 before beginning a slow recovery.

  • Evaluating the Severity of a Labor Market Downturn

  • Arrange the following events related to the US labor market during the Great Recession in the correct chronological order, from earliest to latest.

  • Match each year with the corresponding description of the US labor market during the major economic downturn that began in 2007.

  • Comparative Labor Market Analysis

  • A country's labor market experiences a severe shock. The unemployment rate, initially at 5% in 2007, doubles to a peak of 10% by 2009. Four years later, in 2013, the rate has only fallen to 7%. Which of the following statements provides the most critical evaluation of this labor market's performance during this period?