>>103448334The United States entered recession in 1990, which lasted 8 months through March 1991.[1] Although the recession was mild relative to other post-war recessions,[2] it was characterized by a sluggish employment recovery, most commonly referred to as a jobless recovery. Unemployment continued to rise through June 1992, even though economic growth had returned the previous year.[3]
Job losses and unemployment continued to rise and peaked at 7.8% in June 1992. Gross domestic product grew at a slow and erratic pace in the year that followed the official March 1991 end of the recession, but picked up pace in 1992. Exports, typically a driver of economic recovery, weakened due to persistent economic problems in Europe and Japan.[6] Perhaps the largest impact on the protracted period of unemployment following the early 90s recession were large layoffs in defense related industries. Cumulative defense downsizing resulted in 240,000 job losses from 1990–1992, representing a full 10% reduction in that sector. These cutbacks also spilled over into transportation, wholesale, trade, and other sectors tied to defense related durable goods manufacturing.[6] For all of 1991, the United States incurred a net loss of 858,000 jobs, with 1.154 million created in 1992 and 2.788 million in 1993.
Despite several major economies showing quarterly detraction during 1989, the British economy continued to grow until the third quarter of 1990. Economic growth was not re-established until early 1993, with the end of the recession being officially declared on 26 April that year, but the Conservative government which had been in power continuously since 1979 managed to achieve re-election in April 1992 after the replacement of long-serving Margaret Thatcher with John Major as prime minister in November 1990 helped fend off a strong challenge from Neil Kinnock and Labour.
