The industrial composition of recessions

Every recession is different, affecting some industries more than others. Analyzing the composition of the recession may reveal how the recovery from the recession may progress, as jobs in some industries appear easier to fill than jobs in other industries. The recession that followed the Great Financial Crisis (GFC) resulted in a substantial downturn in construction, among other industries. Triggered by lockdowns associated with containing COVID-19, the 2020 recession had substantial effects on the travel and hospitality industries—restaurants, hotels, airlines, etc.

The FRED graphs in this post show employment for four industries in thousands of persons, with the shaded gray bars indicating the period of recession. The first industry—construction—experienced a substantial downturn during and after the GFC, and recovery from that episode was slow. During the COVID-19 recession, however, the downturn in construction was relatively small; as of January 2021, it had recovered about 77% of its employment loss. The other

Federal Reserve Source

Author: RealEstate