Unemployment often keeps increasing after the economy begins to recover.

Question

Quizplus · Accepted Answer

This phenomenon is known as "lagging unemployment." Even as businesses start to hire again, it can take some time for the unemployment rate to decrease because job seekers who were previously discouraged or inactive may begin actively searching for jobs again, leading to an increase in the labor force. Additionally, certain industries may take longer to recover, leaving their workers unemployed for a longer period of time.

Unemployment Often Keeps Increasing After the Economy Begins to Recover