May 5, 2010

Richmond Fed Publication Examines the Unemployment Situation

Richmond, Va.

Economists often speak of a "natural" rate of unemployment that the economy tends to gravitate toward over the long run. But if the natural rate has risen lately, as some economists suspect, then unemployment may not fall anytime soon to the levels seen before the recent downturn. The cover story of the latest issue of Region Focus surveys the debate over whether we should expect a “new normal” for labor markets in the future.

Also in this issue:

• Consumption and Recessions. What has influenced previous patterns of consumption and how might that help inform expectations about future consumption trends?
• Foreclosures and Neighborhoods. A historically large number of homes are vacant across the Fifth District. How to cope with the potentially deleterious effects these homes may have on some localities has become an important question for community leaders and policymakers.
• The 2010 Census. Discover how the Census Bureau has been working to deal with the phenomenon of  historically "undercounting" some demographic groups.

Region Focus, a quarterly business magazine published by the Federal Reserve Bank of Richmond, covers the economy and business activities of the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.

For free copies of Region Focus, contact the Bank's Research Publications division at 800.322.0565. The articles are available online at http://www.richmondfed.org/publications

As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District — including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia — to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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