Authors: Erica L. Groshen, Simon Potter, and Rebecca J. Sela

When economic activity slows down, labor markets may undergo extensive structural change—the permanent reallocation of workers across industries. Job losses can be heavy, and creating new jobs and retraining displaced workers to fill them can take time. A high degree of restructuring may help to explain why New York State’s most recent downturn persisted for well over two years.