The unemployment rate rose during the first three calendar quarters of the current
recession by about the same extent as during the equivalent period in the recession
of 1990s and by just a little more than in the recession of the early 1990s.
Since Q3 2008, the unemployment rate rose by 1.3 percentage points, to reach 7.1%,
a similar increase to the 1980s recession. By comparison, the jobless rate rose
by 0.9 percentage points in the first three quarters of the early 1990s recession,
to reach 8%.
Since the population has been growing over the last three decades, however, the
rise in the number of people unemployed has been greater in this recession.
From the start of Q4 2008 to the end of Q2 2009, unemployment levels increased by
530,000, compared with rises of 434,000 and 304,000 during the equivalent periods
in the 1980s and 1990s downturns.
As previously, unemployment levels were quick to react to the economic slowdown,
rising almost immediately GDP began to fall. But the earlier experiences show that
unemployment did not fall immediately after the economy returned to positive growth.
The unemployment figure had not returned to the pre-1980s recession level before
the 1990s recession started and it was six years for the figure to climb back to
its pre-1990s recession level.