DEFINITION of 'Jobless Recovery'

An economic recovery, following a recession, where the economy as a whole improves, but the unemployment rate remains high or continues to increase over a prolonged period of time. This effect may be a result of cautious businesses that add hours to existing employees in order to increase production capacity rather than hiring new workers.

BREAKING DOWN 'Jobless Recovery'

An example of a jobless recovery occurred in the early 1990s. While the American recession from the late 1980s technically ended in the first quarter of 1991, the unemployment rate did not actually stabilize until the middle of 1992.

  1. Structural Unemployment

    Structural unemployment is a longer-lasting form of unemployment ...
  2. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  3. Full Employment

    Full employment is a situation in which all available labor resources ...
  4. Unemployment Compensation

    Unemployment compensation is paid by the state to unemployed ...
  5. Recession Resistant

    An entity which is not greatly affected by a recession. Recession ...
  6. Rebound

    In financial terms, a rebound means a recovery from prior negative ...
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