A Research Report On The Relative Contributions Of Cyclical and Structural Factors On Unemployment In Great Recession

Unemployment is due to cyclical and structural factors. There is always a debate about the relative contribution of cyclical and structural factors in every recession. This study was conducted to determine the relative contribution of each factor in the Great Recession. The results suggest that cyclical factors accounted for 75% and structural factors accounted for 25%. The split was 60-40 when only long term unemployment was considered.