Hysteresis unemployment

Hysteresis unemployment is a type of long-term unemployment that results from the persistence of high unemployment rates over an extended period of time. It occurs when the economy experiences a period of prolonged weakness, such as during a recession, which leads to a high level of structural unemployment. Structural unemployment is a type of unemployment that occurs when there is a mismatch between the skills and qualifications of the unemployed workers and the needs of the job market. During a recession, many workers may lose their jobs and find it difficult to find new employment because their skills are no longer in demand or because there are few job openings in their field. This can lead to a situation where the unemployment rate remains high even after the economy recovers, because many workers are unable to find new jobs or are only able to find jobs that pay less than their previous ones.

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