World map showing real GDP growth rates for 2009; countries in brown were in a recession.
Business cycle with it specific forces in four stages according to Malcolm C. Rorty, 1922
A bank run at a branch of the Northern Rock bank in Brighton, England, on September 14, 2007, amid speculation of problems, prior to its 2008 nationalisation.
A simplified Kondratiev wave, with the theory that productivity enhancing innovations drive waves of economic growth
U.S. residential and non-residential investment fell relative to GDP during the crisis
Economic activity in the United States, 1954–2005
U.S. households and financial businesses significantly increased borrowing (leverage) in the years leading up to the crisis
Deviations from the long-term United States growth trend, 1954–2005
US household debt relative to disposable income and GDP.
International product life cycle
U.S. Changes in Household Debt as a percentage of GDP for 1989–2016. Homeowners paying down debt for 2009–2012 was a headwind to the recovery. Economist Carmen Reinhart explained that this behavior tends to slow recoveries from financial crises relative to typical recessions.
10-year minus 3-month US Treasury Yields
Housing price appreciation in selected countries, 2002–2008
Securitization markets were impaired during the crisis.
Several major U.S. economic variables had recovered from the 2007–2009 Subprime mortgage crisis and Great Recession by the 2013–2014 time period.
U.S. Real GDP – Contributions to Percent Change by Component 2007–2009
Public Debt to GDP Ratio for Selected European Countries – 2008 to 2011. Source Data: Eurostat
Relationship between fiscal tightening (austerity) in Eurozone countries with their GDP growth rate, 2008–2012
Slovenian anarchist anti-fascist protest due to the great recession.
Sydney's financial district at night. Throughout the Great Recession, the Australian economy remained resilient and stable.
The anti-austerity movement in Spain, May 2011
Federal Reserve Holdings of Treasury and Mortgage-Backed Securities
Bank bailouts in the United Kingdom and in the United States in proportion to their GDPs.

Two senses of the word "recession" exist: one sense referring broadly to "a period of reduced economic activity" and ongoing hardship; and the more precise sense used in economics, which is defined operationally, referring specifically to the contraction phase of a business cycle, with two or more consecutive quarters of GDP contraction (negative GDP growth rate).

- Great Recession

This was particularly true during the Golden Age of Capitalism (1945/50–1970s), and the period 1945–2008 did not experience a global downturn until the Late-2000s recession.

- Business cycle
World map showing real GDP growth rates for 2009; countries in brown were in a recession.

2 related topics

Alpha

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

Recession

The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).

In economics, a recession is a business cycle contraction when there is a general decline in economic activity.

The most recent recession to affect the United Kingdom was the 2020 recession attributed to the COVID‑19 global pandemic, the first recession since the Great Recession.

Unemployment rate, 2017

Unemployment

People above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period.

People above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period.

Unemployment rate, 2017
Unemployment in Mexico 2009
US unemployment rate, 1990—2022. The increase in unemployment during recessions (shaded) is called cyclical unemployment.
Short-Run Phillips Curve before and after Expansionary Policy, with Long-Run Phillips Curve (NAIRU). Note, however, that the unemployment rate is an inaccurate predictor of inflation in the long term.
Okun's Law interprets unemployment as a function of the rate of growth in GDP.
The Beveridge curve of 2004 job vacancy and unemployment rate (from the US Bureau of Labor Statistics)
Karl Marx, Theorien über den Mehrwert, 1956
Unemployment in Europe (2020) according to Worldbank
Unemployment rates from 2000–2019 for United States and Japan and European Union
Unemployment rate in the US by county in 2008
U1–U6 since 1950, as reported by the Bureau of Labor Statistics
A government unemployment office with job listings, West Berlin, West Germany, 1982
Migrant Mother, photograph by Dorothea Lange, 1936
Demonstration against unemployment in Kerala, South India, India on 27 January 2004
Unemployment rate in Germany in 2003 by states
In the Shapiro–Stiglitz model of efficiency wages, workers are paid at a level that dissuades shirking. That prevents wages from dropping to market clearing levels.
Supply-side economics proposes that lower taxes lead to employment growth. Historical state data from the United States shows a heterogeneous result.
Tax decreases on high income earners (top 10%) are not correlated with employment growth, but tax decreases on lower-income earners (bottom 90%) are correlated with employment growth.
Unemployed men outside a soup kitchen in Depression-era Chicago, Illinois, United States, 1931
The Depression of 1873–79: New York City police violently attacking unemployed workers in Tompkins Square Park, Manhattan, New York City 1874
WPA poster promoting the benefits of employment
Unemployment rate of Japan. Red line is G7 average. 15-24 age (thin line) is Youth unemployment.

Its name is derived from the frequent ups and downs in the business cycle, but unemployment can also be persistent, such as during the Great Depression.

A historic shift began around the end of the Great Recession as women began leaving the labor force in the United States and other developed countries.