History of the Unemployment Rate

The Great Depression

Dec 31, 1939

During the Great Depression, the unemployment rate is predicted to have been around 23.6% which is the highest in modern times.

1944

Dec 31, 1944

In 1944, the unemployment was 1.2%--the lowest it has ever been. This was because of World War 2: men were employed by the armed forces and women took over the jobs at home. After the war, in 1953, the unemployment rate was 2.9% .

Federal Aid Highway Act

Dec 31, 1956

President Eisenhower passed this bill in 1956. The unemployment rate was 6.8% so this document created construction jobs around the country including improving roads, building highways and constructing bridges. Thousands were put to work which caused the unemployment rate decline.

1962

Dec 31, 1962

President John F Kennedy increased social security, created more unemployment benefits and cut taxes. These improvements prevented a brief recession during his term and lowered the unemployment rate from 6.7% in 1961 to 5.5% in 1962.

President Ronald Reagan

Jan 20, 1981

During Reagan's eight years in office, 20 million jobs were created. The unemployment rate went from 7.6% to 5.5%. One of his steps was cutting federal and other individual income taxes. These tax cuts saved average income families 9,000 dollars. He also reduced federal government regulation which, in addition to the tax cuts, helped create the 20 million new jobs. Half of those jobs went to women and African-American whose employment increased by 25%.

President George H. Bush

Jan 20, 1989

Bush's presidency is considered more successful with foreign policy and relations, not domestic affairs. He promised to continue Reagan’s work, however the American people felt that he betrayed that promise. The stock market did very well during his presidency, but unemployment had continued to rise and gas prices skyrocketed.

President William Jefferson "Bill" Clinton

Jan 20, 1993

In Clinton’s 8 years in office, he dropped the unemployment rate from 7.3% to 4.2%. His biggest economic accomplishment was NAFTA which revitalized the economy at the time. The North America Free Trade Agreement was a trading agreement among Canada, the United States and Mexico. Trading excelled and this created more profit and jobs for all three countries

President George W. Bush

Jan 20, 2001

Just eight months into Bush’s presidency, the 9/11 attacks occurred and outlined what his focus should be. To pay for military action in the Middle East government spending increased tremendously. During his time in office, the unemployment rate started at 4.2% and increased to 7.8% by 2009.

President Barack Obama

Jan 20, 2009

During Obama’s terms, the unemployment rate went from 7.8% and is currently around 5%. However, many other factors such as underemployment and the labor participation rate have not improved since 2009. The unemployment rate alone is misleading as the other numbers don’t show the same improvement.