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A '''jobless recovery''' is an economics term used when the economy has started to grow after reaching the bottom of a [[recession]], but [[unemployment]] remains high and there is still either continuing net job loss or little net job creation.  Historically, many recoveries in the [[United States]] have had increasing unemployment for several months after the first signs of positive [[GDP]] growth.  However subsequently, some recoveries have followed a "V-shape" where employment growth picks up rapidly, whereas other recoveries have had slow employment growth.

A '''jobless recovery''' is an economics term used when the economy has started to grow after reaching the bottom of a [[recession]], but [[unemployment]] remains high and there is still either continuing net job loss or little net job creation.  Historically, many recoveries in the [[United States]] have had increasing unemployment for several months after the first signs of positive [[GDP]] growth.  However subsequently, some recoveries have followed a "V-shape" where employment growth picks up rapidly, whereas other recoveries have had slow employment growth.

In the [[Great Depression]] of the 1930s, unemployment remained stubbornly high even after most sectors of the economy had recovered.<ref> see Richard J. Jensen, "The Causes and Cures of Unemployment in the Great Depression," ''Journal of Interdisciplinary History'' 19 (1989) 553-83. [http://www.jstor.org/pss/203954 online at JSTOR]</ref> Unique economic circumstances are sometimes micharacterized as jobless recoveries. While the economy lost jobs when there was positive GDP growth from 2001-2003, there was <i>no</i> recession according to the traditional definition of two consecutive quarters of negative growth.<ref>[http://www.bea.gov Bureau of Economic Analysis]</ref><ref>[http://economics.about.com/od/economicsglossary/g/recession.htm About.Com]</ref><ref>[http://www.bls.gov Bureau of Labor Statistics]</ref> On the 2001-2002 stock market crash, Phil Gramm said, "We inadvertently stimulated an industry that was already in boom conditions. This changed everything. It changed consumption behavior, it changed lending behavior." <ref>[http://www.time.com/time/business/article/0,8599,1873833,00.html Time: Phil Gramm Says the Banking Crisis Is (Mostly) Not His Fault]</ref>

In the [[Great Depression]] of the 1930s, unemployment remained stubbornly high even after most sectors of the economy had recovered.<ref> see Richard J. Jensen, "The Causes and Cures of Unemployment in the Great Depression," ''Journal of Interdisciplinary History'' 19 (1989) 553-83. [http://www.jstor.org/pss/203954 online at JSTOR]</ref> Unique economic circumstances are sometimes mischaracterized as jobless recoveries. While the economy lost jobs when there was positive GDP growth from 2001-2003, there was <i>no</i> recession according to the traditional definition of two consecutive quarters of negative growth.<ref>[http://www.bea.gov Bureau of Economic Analysis]</ref><ref>[http://economics.about.com/od/economicsglossary/g/recession.htm About.Com]</ref><ref>[http://www.bls.gov Bureau of Labor Statistics]</ref> On the 2001-2002 stock market crash, Phil Gramm said, "We inadvertently stimulated an industry that was already in boom conditions. This changed everything. It changed consumption behavior, it changed lending behavior." <ref>[http://www.time.com/time/business/article/0,8599,1873833,00.html Time: Phil Gramm Says the Banking Crisis Is (Mostly) Not His Fault]</ref>