increase in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …

In recessions, unemployment increases despite the—perhaps counterintuitive—fact that the number of unemployed workers … finding jobs expands. On net, unemployment rises only because even more workers lose their jobs. We propose a theory of … unemployment fluctuations resting on this countercyclicality of gross flows from unemployment into employment. In recessions, the …

counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important …