Oct 26, 2012


The graph is from the working paper "The United States Labor Market: Status Quo or A New Normal?" by  James & Spletzer (September 2012). From the conclusion: 
During the recent recession, unemployment rates rose to very high levels and then started to retreat. At the same time, some industries, like construction, manufacturing, and retailing, experienced disproportionately large increases in unemployment. But the patterns observed on the way up were mirrored on the way down.  Those industries that contributed much to the increase in unemployment between 2007 and 2009 were the same that accounted for decreases in unemployment since 2009. 
The same is true for mismatch, which measures the difference between vacancies and unemployed in an industry, occupation, or location. Industrial mismatch rose substantially during the recent recession, but retreated just as quickly even as unemployment rates have remained high. What happened on the way up happened symmetrically on the way down.

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