Underemployment and the Compensation-Productivity Gap
3 Describe the issue of underemployment and the compensation–productivity gap.
In this section, we explore two enduring effects of the so-called Great Recession, which took hold during the December 2007–June 2009 period. The term economic recession refers to a general slowdown in economic activity. Evidence of economic recessions includes reduced gross domestic product (GDP), which we defined in Chapter 14, and increased unemployment rates. Multiple complex factors contribute to economic recessions. Reduced consumer spending is one of the causes of economic recessions. Among the most serious effects are underemployment and the compensation–productivity gap.
Underemployment
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