US Sectoral Comovement Patterns Shift, Impacting GDP and Employment Volatility
The article explores how different industries in the US economy have changed in their correlation during business cycles since the 1980s. While the correlation of output between sectors has decreased, the correlation of employment has remained stable. By analyzing production linkages, the researchers found that these changes have impacted overall economic dynamics, leading to lower GDP volatility but higher employment volatility relative to output.