When the recessions of 1990€“1991 and 2001 ended, unemployment kept rising and it took roughly two-and-a-half years before unemployment returned to where it was at the trough of the recession. The figure below shows the path of unemployment (indexed to 100 = trough level) after the recession had officially ended.

Following the 1990€“1991 recession, unemployment only returned to its lowest level (at the peak before the recession) after four-and-a-half years, and with the recession of 2001, unemployment never returned to its lowest level. Does this phenomenon of unemployment continuing to rise after a recession has ended help foster the conclusion that these two recoveries were jobless recoveries?

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120 Recession Ended 110 2001 1990-1991 E 100 5 90 80 一3 0 3 6 9 12 15 18 21 24 27 30 Months Before and After Recession Ended