History of Unemployment in Timeline

Unemployment, as defined by the OECD, represents the percentage of individuals above a certain age who are not engaged in paid employment or self-employment but are actively seeking work and available to start during a specific time frame. It's a key indicator of economic health, reflecting the underutilization of labor resources and potential economic hardship for individuals and families. High unemployment rates can signal a recession or economic downturn, while low rates often indicate a strong economy. Understanding unemployment is crucial for policymakers aiming to foster economic stability and full employment.

1900: Correlation between Wage and Unemployment

In 1900, as part of their study, Richard Vedder and Lowell Gallaway began examining the correlation between adjusted real wages and unemployment rates in the United States.

1921: Hyperinflation

In 1921, hyperinflation began in the Weimar Republic.

1923: Beer Hall Putsch

In 1923, Hitler's Beer Hall Putsch occurred.

1925: Unemployment began to rise

After 1925, unemployment gradually began to rise.

1929: The U.S. unemployment rate averaged 3%

In 1929, the U.S. unemployment rate averaged 3%.

1930: Increased Female Labor Force Participation

In 1930, female labor force participation increased.

1932: Unemployment rate reached 25% in Germany and the United States

In 1932, during the Great Depression, the unemployment rate reached about 25% in both Germany and the United States.

1932: National unemployment level peaked at more than 22%

In 1932, the national unemployment level peaked at more than 22% in some towns and cities in the northeast of England.

1933: Rise of Nazi Government

In 1933, the Nazis assumed government during a period of high unemployment.

1933: Workweek reduced to 40 hours under National Industrial Recovery Act

In 1933, the average workweek in the US was reduced to 40 hours (after which overtime premium was applied) as part of the National Industrial Recovery Act, while enormous productivity gains caused by electrification, mass production, and agricultural mechanization were believed to have ended the need for a large number of previously employed workers.

1933: Fall of the Weimar Republic and Rise of Hitler

In 1933, the fall of the Weimar Republic in Germany and Adolf Hitler's rise to power, leading to World War II, are attributed to poor economic conditions, including a high unemployment rate of above 20%.

1933: Unemployment in Canada reached 27%

In 1933, unemployment in Canada reached 27% at the depth of the Depression.

1935: Establishment of US unemployment insurance system

In 1935, the Social Security Act established the unemployment insurance system in the US. It is based solely on previous income and usually compensates for one third of previous income.

1935: Establishment of the Works Progress Administration

In 1935, the Works Progress Administration (WPA) was established in the US as the largest make-work program.

1945: Australia established full employment policy

In 1945, Australia established a government policy of full employment via the White Paper on Full Employment in Australia, which lasted until the 1970s.

1948: Female Labor Force Participation Rate

In 1948, the female labor force participation rate was approximately 33% in the United States.

1948: End of workhouse system in Britain

In Britain, the workhouse, an institution providing jobs for the unemployed with harsh conditions and poor wages to dissuade their use, ended in 1948.

1950: Continued Increase in Female Labor Force Participation

By 1950, female labor force participation continued to increase due to increased demand for office workers, participation in the high school movement, and electrification reducing household chores.

1953: Decrease in Male Labor Force Participation

In 1953, the decline of Male labor force participation began.

1963: Equal Pay Act

In 1963, the Equal Pay Act was enacted, aiming to abolish wage disparity based on sex.

1972: Unemployment in the United Kingdom rose above 1,000,000

By 1972, unemployment in the United Kingdom had crept back up above 1,000,000.

1979: Inflation reduced after Thatcher's Conservative government took over

After 1979, the monetarist economic policies of Margaret Thatcher's Conservative government saw inflation reduced.

1979: Harvey Brenner's Study on Unemployment and Mortality

In 1979, M. Harvey Brenner found that for every 10% increase in unemployment, there is an increase of 1.2% in total mortality, a 1.7% increase in cardiovascular disease, 1.3% more cirrhosis cases, 1.7% more suicides, 4.0% more arrests, and 0.8% more assaults reported to the police.

1979: Unemployment figures under Thatcher's Conservative government

Since the 1979 election, Thatcher's Conservative government oversaw a rise in unemployment from 1.5 million to 3.2 million, which was regarded as a key guarantor of electoral defeat.

1982: Unemployment in the UK exceeded 3,000,000

In 1982, unemployment in the United Kingdom exceeded 3,000,000, a level that had not been seen for some 50 years.

1983: High unemployment in major industrialized nations

By the spring of 1983, unemployment had risen by 6% in the previous 12 months, compared to 10% in Japan, 23% in the US, and 34% in West Germany (seven years before Reunification).

1983: Thatcher's Conservative government won election despite high unemployment

In 1983, the United Kingdom saw Thatcher's Conservative government win a landslide in the general election, despite overseeing a rise in unemployment from 1.5 million to 3.2 million since the 1979 election.

1985: Study of incarceration on unemployment

In 1985, economists Lawrence F. Katz and Alan B. Krueger began studying the impact of incarceration on Unemployment, eventually publishing their findings in 1999.

1987: UK economy enjoyed a boom

In the spring of 1987, the economy in the United Kingdom enjoyed a boom, and unemployment remained above 3,000,000 until then.

1988: Female Labor Force Participation Rate Levels

As of April 2015, the female labor force participation rate has gone back down to 1988 levels of 56.6%.

1989: Unemployment fell while inflation reached 7.8%

By the end of 1989, unemployment in the United Kingdom had fallen to 1,600,000. However, inflation had reached 7.8%.

1990: Recession occurred

From 1990 to 1992, another recession occurred, during which unemployment began to increase.

1990: Vedder and Gallaway's Study Conclusion

In 1990, economists Richard Vedder and Lowell Gallaway concluded their study, arguing that their data from 1900 to 1990 validates classical unemployment theory, noting a strong correlation between adjusted real wage and unemployment in the United States.

1992: Unemployment hit nearly 3,000,000

By the end of 1992, nearly 3,000,000 people in the United Kingdom were unemployed.

1993: Inflation down to 1.6%

With inflation down to 1.6% by 1993, unemployment then began to fall rapidly.

1994: BLS Revised CPS

In 1994, the BLS revised the CPS and renamed the measure representing the official unemployment rate from U5 to U3.

1997: Unemployment stood at 1,800,000

By early 1997, unemployment in the United Kingdom stood at 1,800,000.

1999: Estimated Impact of Incarceration on Unemployment

In 1999, economists Lawrence F. Katz and Alan B. Krueger estimated that increased incarceration lowered measured unemployment in the United States by 0.17% between 1985 and the late 1990s.

2000: Start of the period when the United States lost manufacturing jobs

From 2000 to 2007, the United States lost a total of 3.2 million manufacturing jobs.

2000: Christopher Ruhm's Study on Recessions and Health

In 2000, Christopher Ruhm's study on the effect of recessions on health found that several measures of health actually improve during recessions.

2000: US Non-Agricultural Labor Force

In 2000, the United States' non-agricultural labor force increased to 97%.

2000: Peak Female Labor Force Participation Rate

In 2000, the female labor force participation rate in the United States peaked at 60.3%.

2001: Start of the period when US trade deficit with China cost jobs

From 2001 to 2008, the increasing US trade deficit with China cost 2.4 million American jobs, according to a study by the Economic Policy Institute (EPI).

2004: OECD Unemployment Statistics

For the fourth quarter of 2004, according to OECD, normalized unemployment for men aged 25 to 54 was 4.6% in the US and 7.4% in France, while the employment rate was 86.3% in the US and 86.7% in France.

April 2005: Loss of textile worker jobs in South Africa

In April 2005, it was noted that in South Africa, some 300,000 textile workers had lost their jobs in the past two years due to the influx of Chinese goods.

2005: Employment Outlook 2005

According to the OECD's Employment Outlook 2005, normalized unemployment for men aged 25 to 54 in the fourth quarter of 2004 was 4.6% in the US and 7.4% in France.

2005: Incarceration Rate in the US

As of 2005, roughly 0.7% of the US population was incarcerated (1.5% of the available working population).

2007: End of the period when the United States lost manufacturing jobs

From 2000 to 2007, the United States lost a total of 3.2 million manufacturing jobs.

2007: Study on Unemployment Among Young People

In 2007, a study from Jacob and Kleinert found that young people (ages 18 to 24) who have fewer resources and limited work experiences are more likely to be unemployed.

2007: Start of the period of high youth unemployment around the world

Nearly 75 million youth are unemployed around the world, an increase of more than 4 million since 2007. In the European Union, where a debt crisis followed the financial crisis, the youth unemployment rate rose to 18% last year from 12.5% in 2007, the ILO report shows.

January 2008: US Unemployment Rates by Group

In January 2008, the US unemployment rates were 4.4% for adult men, 4.2% for adult women, 4.4% for Caucasians, 6.3% for Hispanics or Latinos (all races), 9.2% for African Americans, 3.2% for Asian Americans, and 18.0% for teenagers.

2008: Study on Unemployment and Divorce

A 2008 study from Covizzi examined the relationship between unemployment and divorce, finding that the rate of divorce is greater for couples when one partner is unemployed.

2008: End of the period when US trade deficit with China cost jobs

From 2001 to 2008, the increasing US trade deficit with China cost 2.4 million American jobs, according to a study by the Economic Policy Institute (EPI).

2008: Unemployment increase in the United Kingdom

In 2008, the recession brought on another increase in unemployment in the United Kingdom, after 15 years of economic growth and no major rises in unemployment.

2008: Publication of Western Civilization: Since 1500

Jackson J. Spielvogel's "Western Civilization: Since 1500" was published in 2008.

Western Civilization: Volume II: Since 1500 by Jackson J. Spielvogel (2014-01-01)

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November 2009: High youth unemployment in EU

In November 2009, the unemployment rate in the EU27 for those aged 15–24 was 18.3%. For those under 25, the unemployment rate in Spain was 43.8%.

December 2009: Eurozone unemployment rate reached 10%

In December 2009, the official unemployment rate in the 16 European Union (EU) countries that use the euro rose to 10% as a result of another recession.

2009: Start of Decline in Female Labor Force Participation

Around the end of the Great Recession in 2009, women began leaving the labor force in the United States and other developed countries.

2009: Gender gap in unemployment widened in US

In 2009, the gender gap in unemployment became wide in the United States, with 10.5% of men and 8% of women in the labor force unemployed.

2009: Unemployment passed 2 million

In early 2009, unemployment in the UK passed the 2 million mark, and economists were predicting it would soon reach 3 million.

January 2010: End of the recession declared

In January 2010 the end of the recession was declared.

April 2010: US unemployment rate was 9.9%

In April 2010, the US unemployment rate was 9.9%, but the government's broader U-6 unemployment rate was 17.1%.

2010: Unemployment rose in two thirds of European countries

Unemployment has risen in two thirds of European countries since 2010.

2011: Unemployment rate of US military veterans served after 9/11 was 12.1%

In 2011, 12.1% of US military veterans who had served after the September 11 attacks in 2001 were unemployed; 29.1% of male veterans aged 18–24 were unemployed.

2011: Unemployment peaked at nearly 2.7 million

In 2011, unemployment in the United Kingdom peaked at nearly 2.7 million. The unemployment rate of Britain's young black people was 47.4%.

April 2012: Unemployment rate in Japan was 4.6%

In April 2012, the unemployment rate was 4.6% in Japan.

October 2013: Increase in Male Labor Force Participation

Since October 2013, men have been increasingly joining the labor force in the United States.

2013: Proposed Change to Unemployment Rate Calculation

In 2013, Representative Hunter proposed that the Bureau of Labor Statistics use the U5 rate instead of the current U3 rate.

2013: Robert J. Shiller's Nobel Prize and Views on Inequality

In 2013, Robert J. Shiller, winner of the Nobel Prize in Economics, stated that rising inequality in the United States and elsewhere is the most important problem.

2013: ILO Resolution on Unemployment Measurement

In 2013, the ILO adopted a resolution to introduce new indicators to measure the unemployment rate.

2013: Employment rate increased to 1,935,836

In 2013, the employment rate increased to 1,935,836.

2014: Study on Stigma of Unemployment

A 2014 study by Van der Meer found that the stigma that comes from being unemployed affects personal well-being, especially for men, who often feel as though their masculine identities are threatened by unemployment.

2014: Employment rate increased to 2,173,012

In 2014, the employment rate increased to 2,173,012, supported by showing the UK is creating more job opportunities.

April 2015: Female Labor Force Participation Rate

In April 2015, the female labor force participation rate in the United States decreased to 56.6%, returning to 1988 levels.

April 2015: Female Labor Force Participation Rate in April 2015

In April 2015, the female labor force participation rate was 56.6%, the male labor force participation rate was 69.4%, and the total was 62.8% in the United States.

2015: Study on Unemployment and Suicides

A 2015 study published in The Lancet estimates that unemployment causes 45,000 suicides a year globally.

2015: Forecast of employment rate increase

In 2014/2015, the rate of increase in employment is forecast to be another 7.2%.

2015: European Commission's Recommendations to Reduce Unemployment

In 2015, the European Commission published recommendations advising governments on how to reduce long-term unemployment.

September 2016: Total veteran unemployment rate was 4.3 percent

As of September 2016, the total veteran unemployment rate in the US was 4.3 percent.

September 2017: Total veteran unemployment rate dropped to 3 percent

By September 2017, the total veteran unemployment rate in the US had dropped to 3 percent.

2017: Long-Term Unemployment Project Implementation

In 2017, the Long-Term Unemployment project was implemented to research solutions by EU member states.

March 2018: US unemployment rate was 4.1%

In March 2018, according to US Unemployment Rate Statistics, the unemployment rate in the US was 4.1%, below the 4.5–5.0% norm.

2018: Global Unemployment Statistics

In 2018, the UN's International Labour Organization (ILO) reported that 172 million people worldwide, representing 5% of the global workforce, were unemployed.

2019: Evaluation of the Long-Term Unemployment Project

In 2019, the progress of the Long-Term Unemployment project was evaluated.

2021: Decline in labor force participation rate for non-white women and women with children

In 2021, the labor force participation rate for non-white women and women with children declined significantly during the COVID-19 pandemic, with approximately 20 million women leaving the workforce, leading some to describe the phenomenon as a "she-cession".

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