An Employment Pressure Index as an Alternative Measure of Labor Market Conditions

William E. Cullison
1974 Social Science Research Network  
Federal Reserve Bank of Richmond Much attentj.on has been devoted to the peculfar behavi.or of the unemployment rate from 1969 to 1973. In p&t recessions, the unemployment rate reached definite turning yolnts and showed fairly consistent recovery shortly thereafter. Its behavior during the 1970 recession and the subsequent recovery, however, was noticeably ditferent. The unemployment rate rose to around 6 pe,rcent i.n November 3.970 and remained very close to that level until June 1972, setting
more » ... June 1972, setting a record for the longest peak in the history of the series, Moreover 9 through the summer and fall of 1973, when other economic indicators had been signaling that recovery was weli under way and that the economy was approaching full capacity: the unemployment rate continued to indicate a relatively slack labor market.
doi:10.2139/ssrn.2118847 fatcat:lgsfvzx3bfdnrkichg5d4sj2aa