History of Unemployment in Timeline

Unemployment refers to the condition of individuals who are actively seeking work but are unable to find it, meaning they are not engaged in paid employment or self-employment despite being available for work. It is a key economic indicator, quantified by the unemployment rate. This rate represents the percentage of the labor force that is unemployed during a specific reference period, providing a snapshot of the labor market's health and the extent to which the workforce is being utilized.

1900: Correlation between adjusted real wage and unemployment in the United States

In 1900, economists Richard Vedder and Lowell Gallaway found a strong correlation between adjusted real wage and unemployment in the United States. Their data from 1900 to 1990 validates classical unemployment theory, however, they maintain that their data does not take into account exogenous events.

1925: Rising unemployment after 1925

After 1925, unemployment gradually began to rise.

1929: Low U.S. unemployment rate in 1929

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

1930: Increased female labor force participation

Between 1930 and 1950, female labor force participation increased due to a rise in demand for office workers, women's participation in high school, and electrification reducing household chores.

1932: Peak of national unemployment level in the UK

In 1932, the national unemployment level peaked at more than 22% in some towns and cities in the northeast of England, unemployment reached as high as 70%.

1932: Great Depression impacts unemployment

In 1932, the unemployment rate reached about 25% in Germany and the United States due to the impact of the Great Depression.

1933: National Industrial Recovery Act reduces workweek

In 1933, as part of the National Industrial Recovery Act, the average workweek in the US was reduced to 40 hours, after which overtime premium was applied.

1933: Nazis assume government

In 1933, the Nazis did not assume government until ten years after the hyperinflation but in the midst of high unemployment.

1933: The fall of the Weimar Republic

In 1933, the fall of the Weimar Republic and Adolf Hitler's rise to power, which culminated in World War II, is attributed to the poor economic conditions in Germany at the time, notably a high unemployment rate of above 20%.

1933: Unemployment in Canada reaches 27%

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

1935: Establishment of Unemployment Insurance by Social Security Act of 1935

In 1935, the Social Security Act established the unemployment insurance system in the US, which 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 (1935–43) was established in the US as the largest make-work program, hiring men (and some women) off the relief roles typically for unskilled labor.

1945: White Paper on Full Employment in Australia

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

1948: Female labor force participation rate

In 1948, the female labor force participation rate rose from approximately 33%.

1948: Workhouse system ends in Britain

In Britain, the workhouse, an institution that provided jobs for the unemployed with harsh conditions and poor wages, was implemented from the 17th century until 1948.

1950: Increased female labor force participation

In 1950, female labor force participation increased because of the increased demand for office workers, women's participation in the high school movement, and electrification, which reduced the time that was spent on household chores. From the 1950s to the early 1970s, most women were secondary earners working mainly as secretaries, teachers, nurses, and librarians (pink-collar jobs).

1953: Male labor force participation decreased

From 1953 to 2013, male labor force participation decreased.

1963: Equal Pay Act aimed at abolishing wage disparity based on sex

The Equal Pay Act of 1963 aimed at abolishing wage disparity based on sex, diminishing sexual discrimination and encouraged more women to enter the labor market by receiving fair remuneration to help raising families and children.

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

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

1979: Inflation rises in the UK

By 1979, unemployment was even higher in the United Kingdom, with inflation also being high.

1979: M. Harvey Brenner's findings on unemployment and mortality

In 1979, M. Harvey Brenner found that for every 10% increase in the number of unemployed, 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: Rise in unemployment since 1979 election

Since the 1979 election, unemployment had risen from 1.5 million to 3.2 million. The public and media traditionally viewed rising unemployment as a key indicator of electoral defeat for the ruling government.

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

In 1982, unemployment in the United Kingdom exceeded 3,000,000, a level that had not been seen for some 50 years. That represented one in eight of the workforce, with unemployment exceeding 20% in some places that had relied on declining industries such as coal mining.

1983: High unemployment in 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 wins general election despite rising unemployment

In 1983, Margaret Thatcher won the United Kingdom general election despite overseeing a rise in unemployment from 1.5 million to 3.2 million since the 1979 election.

1985: Estimated impact of increased incarceration on unemployment in the United States

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.

1987: UK unemployment falls during economic boom

By the spring of 1987, unemployment in the United Kingdom remained above 3,000,000 but fell as the economy enjoyed a boom.

1988: Female labor force participation rate level

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

1989: Inflation rises in the UK

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

1990: Recession in the UK

A recession occurred from 1990 to 1992, causing unemployment to increase in the United Kingdom.

1990: Correlation between adjusted real wage and unemployment in the United States

In 1990, economists Richard Vedder and Lowell Gallaway found a strong correlation between adjusted real wage and unemployment in the United States. Their data from 1900 to 1990 validates classical unemployment theory, however, they maintain that their data does not take into account exogenous events.

1992: High Unemployment in the UK

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

1993: Inflation down to 1.6% in UK

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

1994: BLS revised the CPS

In 1994, the BLS revised the CPS and among the changes the measure representing the official unemployment rate was renamed U3 instead of U5.

1997: UK unemployment falls to 1,800,000

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

1999: Estimated impact of increased incarceration on unemployment in the United States

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: Manufacturing jobs lost in US

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

2000: Christopher Ruhm study on the effect of recessions on health

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

2000: Non-agricultural labor force in the United States

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

2000: Female labor force participation rate peaked

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

2001: Cost of trade deficit with China

Between 2001 and 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: Unemployment statistics for the US and France

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. At the same time and for the same population, the employment rate (number of workers divided by population) was 86.3% in the US and 86.7% in France.

April 2005: Textile workers lose jobs in South Africa

An Asia Times article from April 2005 noted that some 300,000 textile workers in South Africa had lost their jobs in the past two years due to the influx of Chinese goods.

2005: Incarceration rate in the US population

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

2005: OECD Employment Outlook

For the fourth quarter of 2004, according to OECD (Employment Outlook 2005), normalized unemployment for men aged 25 to 54 was 4.6% in the US and 7.4% in France.

2007: Jacob and Kleinert study on young people and unemployment

A 2007 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: Increase in global youth unemployment since 2007

Between the end of 2007 and the end of 2010, about 25,000,000 people in the world's 30 richest countries lost their jobs. A 2012 story reported nearly 75 million youth were unemployed around the world, an increase of more than 4 million since 2007.

2007: Manufacturing jobs lost in US

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

January 2008: US Unemployment rates for different groups

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: Covizzi study on unemployment and divorce

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

2008: Cost of trade deficit with China

Between 2001 and 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: Publication of "Western Civilization: Since 1500"

In 2008, Jackson J. Spielvogel published "Western Civilization: Since 1500" which may contain information about unemployment.

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

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2008: Unemployment Increase in the UK

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.

November 2009: High unemployment in Latvia

In November 2009, Latvia had the highest unemployment rate in the EU, at 22.3%. Also in November 2009, the unemployment rate in the EU27 for those aged 15–24 was 18.3%.

December 2009: Eurozone unemployment rises to 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: Shift in female labor force participation

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

2009: "Mancession" in the US

In 2009, the gender gap widened in the United States, with 10.5% of men in the labor force being unemployed, compared with 8% of women. The Great Recession has been called a "mancession" because of the disproportionate number of men who lost their jobs as compared to women.

2009: UK Unemployment passes 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 recession declared in the UK

In January 2010, the end of the recession was declared in the United Kingdom.

April 2010: US unemployment rate in April 2010

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

2010: Unemployment Rises in Europe

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

2011: US Military Veteran Unemployment

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: Youth unemployment in the European Union

In 2011, the youth unemployment rate in the European Union rose to 18% from 12.5% in 2007.

2011: Unemployment peaks in UK

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

April 2012: Unemployment rate in Japan

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

October 2013: Men increasingly joining the labor force in the United States

Since October 2013, there has been an increase in men joining the labor force in the United States.

2013: Proposed use of U5 rate by Bureau of Labor Statistics

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

2013: ILO adopted a resolution to introduce new indicators to measure the unemployment rate

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

2013: Robert J. Shiller's view on rising inequality

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

2013: Increase in the employment rate in the UK

In 2013, the employment rate increased in the UK.

2014: Van der Meer 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: Increase in the employment rate in the UK

In 2014, the employment rate increased in the UK.

April 2015: Female labor force participation rate

As of April 2015, the female labor force participation is at 56.6%, the male labor force participation rate is at 69.4%, and the total is 62.8%.

April 2015: Female labor force participation rate in the United States

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

2015: Study on unemployment causing suicides

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

2015: Forecasts the rate of increase in employment will increase in the UK

In 2015, it was forecasted that the rate of increase in employment in the UK will be another 7.2%.

2015: European Commission recommendations on reducing long-term unemployment

In 2015, the European Commission issued recommendations to governments on strategies to reduce long-term unemployment.

September 2016: Veteran Unemployment Rate in the US

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

September 2017: Veteran Unemployment Rate Decreases in the US

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

2017: Implementation of the Long-Term Unemployment project

In 2017, the Long-Term Unemployment project was implemented to research solutions by EU member states, and produce a toolkit to guide government action. Progress was evaluated in 2019.

March 2018: US unemployment rate below norm

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

2018: ILO reports 172 million people unemployed worldwide

In 2018, the UN's International Labour Organization (ILO) reported that 172 million people worldwide, which is 5% of the global workforce, were without work.

2019: Evaluation of the Long-Term Unemployment project

In 2017, the Long-Term Unemployment project was implemented to research solutions by EU member states, and produce a toolkit to guide government action. In 2019, the progress was evaluated.

2021: "She-cession" during COVID-19 pandemic

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".