Long-term unemployment rose dramatically during the recent recession and remains elevated. In this essay, Richmond Fed … suggests that monetary policy may have a limited effect on reducing the incidence of long-term unemployment. The authors also … discuss what lessons might be drawn from policy responses to long-term unemployment in Europe. …

In the latest recession, unemployment rates in the United States increased at a faster pace than in the average OECD … country. Since the unemployment rate has been more sensitive to technological shocks in the United States in the past than in … increase in the U.S. unemployment rate. I find this was not the case. …

The authors find that prolonged deployments overseas account for much of the difference in unemployment rates between …