The New Economic Reality and the Unemployment Rate: Will It Ever Get Below 5% Again?

The unemployment rate has been at 8% or higher during most months since June 2009, when the last recession ended. In the past, the unemployment rate rose during recessions, continued to rise after the official end of the recession, but then declined substantially. Some changes have occurred in the current economy, however, which may prevent the normal decline in the unemployment rate after our most recent recession. We evaluate these and make a conclusion of their impact on the unemployment rate and society.