Unequal Devastation

Recessions do not hit everyone equally. Workers in cyclical industries like construction, manufacturing, and hospitality suffer the most, because spending on big-ticket items and travel dries up first.

Young workers entering the job market during recessions earn less for a decade or more compared to those who graduate during booms — a wage penalty that fades only slowly, and can stretch to fifteen years after the deepest downturns. Minorities and low-income communities face deeper, longer downturns. The wealthy often recover fastest because they own assets that rebound with markets.