datoid

Unemployment reached 9.8% in July 1982, significantly above the 60-point historical average of 6.93% (σ=1.05). This represents a sharp deterioration from 6.3% in early 1980, with acceleration beginning in late 1981. The spike coincides with record-high inflation (CPI at 332.41) and elevated Treasury yields (4.47%), suggesting the economy was grappling with stagflation conditions typical of the early 1980s recession. This 2.7 standard deviation event marks one of the most severe labor market deteriorations in the dataset. What economic policies or external shocks drove this dramatic shift from the relatively stable 1980-81 period?