Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/whats-the-difference-between-a Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter What’s the Difference Between a Recession and a Depression? Economy Oct 21, 2009 10:51 AM EDT Question: What is the difference between a recession and a depression? I have been out of work since last November. It seems like a depression for me. I worked for a civil/structural consulting engineering firm for the past 11 1/2 years. We at one point had 30 people working there. Now 12 people have left, 9 of them are the principles. I do not foresee any work in this area for the next 6 months, at least. I want to go back to work, but there is no work for what I do. Also since I left, 3 of my co-workers have been let go. The firm may close by the end of the year because lack of work. This is a very competitive business. Other firms have closed their doors because of no work. Three years ago, we had the busiest year in the firm’s 25 years of existence. Paul Solman: “Depression” and “recession” are loosely used terms (and you can see here for an earlier post on the differences). To the extent they have technical definitions, the D-word is a shrinkage in total yearly output of 10 percent. The R-word refers to two consecutive quarters (ie, one half-year) of any shrinkage in output. In the vernacular, a “depression” is one hell of a downturn, with one hell of a lot of folks out of work. A “recession” is less catastrophic slide. This downturn is being called the Great Recession because of its severity. But for those like yourself without jobs, “depression” doesn’t seem especially hyperbolic. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now
Question: What is the difference between a recession and a depression? I have been out of work since last November. It seems like a depression for me. I worked for a civil/structural consulting engineering firm for the past 11 1/2 years. We at one point had 30 people working there. Now 12 people have left, 9 of them are the principles. I do not foresee any work in this area for the next 6 months, at least. I want to go back to work, but there is no work for what I do. Also since I left, 3 of my co-workers have been let go. The firm may close by the end of the year because lack of work. This is a very competitive business. Other firms have closed their doors because of no work. Three years ago, we had the busiest year in the firm’s 25 years of existence. Paul Solman: “Depression” and “recession” are loosely used terms (and you can see here for an earlier post on the differences). To the extent they have technical definitions, the D-word is a shrinkage in total yearly output of 10 percent. The R-word refers to two consecutive quarters (ie, one half-year) of any shrinkage in output. In the vernacular, a “depression” is one hell of a downturn, with one hell of a lot of folks out of work. A “recession” is less catastrophic slide. This downturn is being called the Great Recession because of its severity. But for those like yourself without jobs, “depression” doesn’t seem especially hyperbolic. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now