Is the U.S. Unemployment Rate Today Already as High as It Was in 1982?
AbstractIn 1982, the United States experienced the highest annual unemployment rate since the Great Depression – 9.7 percent. In principle, that rate is directly comparable to the 8.1 percent seasonally adjusted unemployment rate for February 2009, and suggests that current unemployment is still not as bad as it was in 1982. The official unemployment rate, however, masks two important differences between the unemployment rate in 1982 and today. The first difference is demographic. In 1982, the US population was substantially younger than it is today. Even in an otherwise identical economy, we would expect a younger population to have a higher unemployment rate than an older population would. The second difference is statistical. The main government survey used to measure the unemployment rate – the Current Population Survey (CPS) reaches a smaller share of the population today than it did in 1982, and is especially likely to miss people who are not employed. As a result, the official unemployment rate understates the unemployment rate relative to 1982.
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Bibliographic InfoPaper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2009-11.
Length: 9 pages
Date of creation: Feb 2009
Date of revision:
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unemployment; unemployment rate;
Find related papers by JEL classification:
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
- E - Macroeconomics and Monetary Economics
- E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J - Labor and Demographic Economics
- J1 - Labor and Demographic Economics - - Demographic Economics
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-MAC-2009-03-28 (Macroeconomics)
- NEP-PKE-2009-03-28 (Post Keynesian Economics)
- NEP-URE-2009-03-28 (Urban & Real Estate Economics)
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