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Unemployed with jobs and without jobs. NBER Working Paper 27886. Cambridge, MA: National Bureau of Economic Research.

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To analyze the rapid decline of the unemployment rate, this paper defines different types of unemployment: recall-unemployment and jobless-unemployment. The authors state that recall-unemployment (workers on furlough or temporary layoff) has become an important part of labour dynamics during the COVID-19 pandemic. In addition, many of the recent reversals in unemployment have been associated with reductions in recall-unemployment. The authors, however, warned that jobless-unemployment — which generally declines slowly — could exacerbate and trigger higher overall unemployment.

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