Jobless Recovery Theory

Jobless Recovery Theory describes an economic situation where a country experiences growth or recovery from a recession, but does not see a corresponding increase in employment levels. This can occur due to various factors, like increased productivity through technology, companies choosing to retain lean operations, or shifts in labor demand. Essentially, while the economy may be improving—reflected in rising GDP—many people may still struggle to find jobs. This phenomenon highlights the disconnect between economic indicators and the job market's health, leading to concerns about income inequality and the challenges of re-employment for affected individuals.