When the US economy hits a recession, the government issues a recession alert and the economy shrinks in a way that is designed to slow the process of recession.
The timing of a recession is determined by a series of events that happen over a period of months.
The most common causes of a slump in the economy are:The economy is hit by a natural disaster, such as a flood, floodwaters, storm or a major earthquake.
The economy slows down, because there are fewer people in work.
Many people, especially women, take time off to care for children.
There is an economic contraction when inflation rises above 2 per cent and consumer spending slows down.
A drop in the number of jobs means fewer people are needed to work, which reduces the number and size of businesses.
A fall in the stock market means there are less people looking for work and less demand for labour.
If you’re a student studying in the US, your study period is about three weeks long.
Students who take a break during the academic year have more time off than those who work.
If your study is in the spring or summer, you can work until the end of September.
If there is no fall in employment and unemployment remains above the national unemployment rate, a recession begins.
It is the start of a major economic downturn.
If the economy is going into recession, people are expected to cut back on spending and save more money.
In the event of a sharp drop in employment, the Federal Reserve will intervene and cut interest rates.
The Federal Reserve may cut interest payments and boost the economy, but it is unlikely that the Federal Government will raise taxes.
The Fed may also cut interest and bond rates, and the Federal government may reduce its spending or raise taxes to help reduce unemployment.
The recession is the period when most people feel the pinch of the recession.
In many cases, people who have lost their jobs are the first to feel the effect of the economic downturn as the economy slows.
People who are still working are more likely to be unemployed than those not working.
The unemployment rate is the unemployment rate minus those who are actively looking for jobs.
If unemployment is less than 5 per cent, the unemployment is classified as being in a “very severe” recession.
This is the level of unemployment that most people are likely to experience.
If rates are higher, people can still find work, but the economy tends to slow down.
People in a recession may start to lose their jobs and move into self-employment.
When a recession ends, the economy stabilises, and people get back to their jobs.