[The] groups [that] experienced the greatest employment losses in the Great Recession [were] ... the same groups who lost in the recessions of the 1980s.
In Who Suffers During Recessions? (NBER Working Paper No. 17951), co-authors Hilary Hoynes, Douglas Miller, and Jessamyn Schaller find that the impacts of the Great Recession (December 2007 to June 2009) have been greater for men, for black and Hispanic workers, for young workers, and for less educated workers than for others in the labor market. While the recent recession was deeper than several other recent downturns, the pattern of unemployment and job opportunity cycles across demographic groups has been remarkably stable in recessions since at least the late 1970s. This is the case despite the dramatic changes in the labor market over the past 30 years, including the increase of women in the labor force, Hispanic immigration, the decline of manufacturing, and so on.
Using population survey and national time-series data, Hoynes, Miller, and Schaller find that in terms of job losses, the Great Recession has affected men more than women. But their analysis also shows that in previous recessions and recoveries, men experienced more cyclical labor market outcomes. This is largely because men are more likely to be employed in highly cyclical industries, such as construction and manufacturing. Women are more likely to be employed in less cyclical industries, such as services and public administration. While the pattern of labor market effects across sub-groups in the 2007-9 recession appears similar to that in the two recessions of the early 1980s, it did have a somewhat greater effect on women's employment -- although in this recession as in past recessions, the effects on women were smaller than those on men. The recent recession was felt more strongly among the youngest and oldest workers. Hoynes, Miller, and Schaller further find that relative to the 1980s recovery, the current recovery is being experienced more by men than women largely because of a drop in the cyclicality of women's employment during this recovery.
The researchers conclude that the overall picture is one of stability in the demographic patterns of response to the business cycle over time. Which groups experienced the greatest employment losses in the Great Recession? The same groups who lost in the recessions of the 1980s, and who experience weaker labor market outcomes even in good times. The authors therefore conclude that the labor market effects of the Great Recession were different from those of business cycles over the three previous decades in size and length, but not in type.
--Matt Nesvisky
FAQs
17951), co-authors Hilary Hoynes, Douglas Miller, and Jessamyn Schaller find that the impacts of the Great Recession (December 2007 to June 2009) have been greater for men, for black and Hispanic workers, for young workers, and for less educated workers than for others in the labor market.
Which groups are affected most by an economic recession? ›
We find that the impacts of the Great Recession are not uniform across demographic groups and have been felt most strongly for men, black and Hispanic workers, youth, and low-education workers.
Who is most affected during a recession? ›
5 Industries Most Affected by Recession and How They Can Thrive During an Economic Downturn
- Retail. According to economists, the retail industry is among the industries most affected by recession in 2023. ...
- Restaurant. ...
- Travel & Tourism. ...
- Real Estate. ...
- Manufacturing.
Which Industries Are Most Affected by a Recession?
- A recession is “a significant decline in economic activity spread across the economy, lasting more than a few months.”
- Industries affected most include retail, restaurants, travel/tourism, leisure/hospitality, service purveyors, real estate, & manufacturing/warehouse.
At the start of the recession unemployment rates for communities of color, particularly Blacks were much higher than those of Whites. While the biggest increase in unemployment has been among Whites, their overall unemployment rate remains much lower than that of Hispanics and Blacks.
Who suffered the most during the Great Recession? ›
Employment losses were severe, but also unevenly distributed: men, the young, and the less educated suffered disproportionately in the recession's aftermath.
What companies do the worst in a recession? ›
Retail, restaurants, hotels and real estate are some of the businesses often hurt during a recession. While such services “may enhance our quality of life, they're not necessary to maintain our basic standard of living,” Kantenga says.
Who is hit hardest in a recession? ›
As presented in this paper, data for both the current and previous financial crises reveals that young people are indeed hit hardest as reflected by rising unemployment rates, which persist long after the economy is growing again.
Who is most likely to be laid off in a recession? ›
Professional and business services has the highest average layoffs per year, and mining and logging has the lowest.
What jobs will be most affected by a recession? ›
Who loses jobs in a recession? Recessions cause people to lose jobs in lots of different industries. During the Great Recession, the unemployment rate hit 10%. Construction and manufacturing often have to cut back on jobs more than other industries, but tech companies can also get hit by layoffs.
Many investors turn to stocks in companies that sell consumer staples like health care, food and beverages, and personal hygiene products. These businesses typically remain profitable during recessions and their share prices tend to better resist stock market sell-offs.
Who is better off in a recession? ›
Financial advisors and accountants
Financial advisors and accountants are recession proof businesses because they offer essential services that individuals and businesses need, regardless of the economic conditions.
What jobs are not recession proof? ›
Some industries feel the impact of an economic downturn more than others. These industries tend to get hit the hardest. Hospitality and tourism - Many cut down on vacations and travel to save money. Entertainment and leisure - People tend to seek inexpensive, at-home forms of entertainment during a recession.
Who suffers more in a recession? ›
17951), co-authors Hilary Hoynes, Douglas Miller, and Jessamyn Schaller find that the impacts of the Great Recession (December 2007 to June 2009) have been greater for men, for black and Hispanic workers, for young workers, and for less educated workers than for others in the labor market.
Who profited most from 2008 recession? ›
Opportunistic investors made a killing during the 2008 and 2009 stock market crash. Billionaire Wall Street legend and Berkshire Hathaway CEO Warren Buffett reportedly earned more than $10 billion in profit on his Great Recession investments by late 2013.
Who loses during a recession? ›
Large and small businesses face declines in sales and profits during a recession. Economic downturns affect credit access, slow collections, and spur business bankruptcies. During an economic downturn, a small consulting firm might experience cash flow issues as clients delay payment.
Who suffers the most when the economy is suffering? ›
Evidence from past recessions shows that economic downturns affect poor and rich people in different ways, with the poor suffering the most in terms of reductions in consumption, worsening job conditions and declines in general wellbeing.
What group determines a recession? ›
In the United States, the private National Bureau of Economic Research (NBER), which maintains a chronology of the beginning and ending dates of U.S. recessions, uses a broader definition and considers a number of measures of activity to determine the dates of recessions.
