[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.
Who suffers the most during a 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.
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.
Who suffers 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.
Which industries were most affected by this recession? ›
Layoffs climbed 396 percent over the same quarter a year earlier in the first quarter of 2023. The tech industry laid off the most workers, but e-commerce, media, and Wall Street were also impacted. Some businesses and industries have historically thrived and even grown during recessionary times.
Who suffered the most during the Great 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 is affected during a recession? ›
Businesses large and small face declines in sales and profits in a recession. Their efforts to cut costs may include layoffs and cuts in capital spending, marketing, and research. Recessions may curb credit access, slow collections, and spur business bankruptcies.
Who in the economy is hurt during a recession? ›
Both the employees and firms get hurt by the recession. Employees lose their jobs and are forced to a lower standard of living while the firms undergo abnormal profits.
Who suffers the most during inflation? ›
Doepke and Schneider (2006) studied the scale of this redistribution and found that the main losers from inflation are old, rich households—the major bondholders in the economy.
Which two groups were financially most negatively affected by the 2008 Great Recession? ›
During the recession, unemployment rates about doubled for all major race and ethnicity groups. (See figure 2.) Unemployment was highest among Blacks and people of Hispanic or Latino ethnicity, as has been the case since comparable race and ethnicity data were first collected in the 1970s.
However, patterns emerging during layoffs earlier this year show that non-essential departments, meaning those that don't contribute to the core functionality of the business, are the ones that often see cuts first.
Who will lose jobs first in a recession? ›
According to the index, the information services; transportation & warehousing; construction; and repair, personal & other services sectors have the highest risk, while government; private education services; health care & social assistance; and the accommodation & food services industry have the lowest risk of job ...
Who is most at risk for layoffs? ›
The workers who feel most at-risk include those in product management, quality assurance, marketing, finance, and IT roles.
Who is hit hardest in a recession? ›
Industries affected most include retail, restaurants, travel/tourism, leisure/hospitality, service purveyors, real estate, & manufacturing/warehouse. Despite the severity of any past downturn, markets have always recovered, and in many cases, they have seen a monster rebound.
Who loses the most in a recession? ›
According to the index, the information services; transportation & warehousing; construction; and repair, personal & other services sectors have the highest risk, while government; private education services; health care & social assistance; and the accommodation & food services industry have the lowest risk of job ...
Who is safest during a recession? ›
- Accountants.
- Healthcare Providers.
- Financial Advisors and Economists.
- Auto Repair and Maintenance.
- Home Maintenance Stores.
- Home Staging Experts.
- Rental Agents and Property Management Companies.
- Grocery Stores.
Both the employees and firms get hurt by the recession. Employees lose their jobs and are forced to a lower standard of living while the firms undergo abnormal profits.
