Which U.S. recession began in July 1981 and ended in November 1982, according to the NBER?

The 1981–1982 recession began in July 1981 and ended in November 1982, according to the National Bureau of Economic Research. It was the second of two closely spaced U.S. recessions in the early 1980s.

The downturn followed aggressive Federal Reserve interest-rate increases under Chair Paul Volcker. Those policies were designed to break entrenched high inflation by slowing credit growth, housing activity, business investment, and consumer demand. Inflation eventually declined substantially, but the adjustment caused severe economic pain.

Unemployment rose above 10% during the recession, and manufacturing, construction, and other interest-sensitive sectors were hit particularly hard. The recovery that followed became one of the longest expansions in postwar U.S. history.

The NBER dates recessions using a broad assessment of economic activity, not a single rule based only on quarterly GDP. That is why official recession dates can differ from simplified public definitions.