Global Economic Crisis Leads to Prolonged Unemployment Across OECD Countries
The global economic crisis caused a rise in long-term unemployment in OECD countries. The study used simple models with data to show that as overall unemployment goes up, so does long-term unemployment. The research found that different countries were affected differently by the crisis, with those facing financial and housing market collapses experiencing the biggest increases in unemployment. Industries like construction and manufacturing were hit hard, along with the financial and business sectors. This led to less job mobility for unemployed workers, as well as a decrease in consumer spending that could slow down economic recovery.