Research in Business and Economics Journal Employment During the Great Recession, Page 1 Employment during the Great Recession: was this time different?

The Great Recession was the most severe recession experienced by the U.S. since the Great Depression. The labor market was particularly hard hit, setting new records in terms of job losses, increases in the unemployment rate and duration of unemployment. Some economists have expressed surprise as to the extent of job losses, even given the severity of the downturn. In this study, models are developed that incorporate alternative measures of the job market as well as economic growth. In addition, a risk premium is included to account for the impact of the availability of credit on the labor market. Results obtained indicate that the behavior of employment during the Great Recession can be explained by the factors included, given historical relationships