Why is there a lag between the end of a recession and the peak in the unemployment rate?

A) Workers would rather draw unemployment than return to work.
B) The first workers recalled are continuing to work part time and when they return to full time employment it does not change the number of people employed.
C) Reemployment is not recognized until later because of the way data are collected.
D) The company has a hard time finding new employees.

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Stephanie Jasmine · Accepted Answer

Final Answer : B, Explanation :  The lag between the end of a recession and the peak in the unemployment rate can be attributed to several factors, but the most significant is that the first workers recalled are often continuing to work part time. When they return to full-time employment, it does not change the number of people employed immediately, which creates a lag.

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