Why unemployment is falling fast


Few things are more puzzling and disconcerting for an economist, and much of the American public, right now than the unemployment rate.

From late 2008 to the end of 2009, the U.S. unemployment rate jumped by 3.1 percentage points. What was so shocking about this was that the relationship between unemployment and the drop in the gross domestic product during the recession would have predicted only a 1.2 percentage point increase. This was the largest forecasting error in decades.

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Sarah Nelson
Sarah Nelson joined the Brainerd Dispatch in April 2010 and works as a online reporter, content editor and staff writer. She is a world traveler, accused idealist and California native now braving the winters of Central Minnesota. She believes in the power of human resolve and hopes to be part of something that makes history by bringing an end to injustice in the world. Sarah has worked as a criminal background researcher, high school civics teacher, grant writer, and contributing writer with — tackling every issue from global poverty to bio-degradable bicycles. Her favorite thing about living in Minnesota is July. Sarah left the Brainerd Dispatch in April 2014.
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