U.S. BUSINESS CYCLE CONTRACTION DOSSIER · FEBRUARY 1945 - OCTOBER 1945
1945 Post-World War II Demobilization Recession
As wartime defense spending wound down at the end of World War II, government outlays contracted sharply while private consumer and housing demand surged, keeping civilian unemployment below 4.5%.
Contraction Duration 8 Months February 1945 to October 1945
Real GDP Drawdown -11.6% Peak-to-trough contraction
Peak Unemployment 4.3% Civilian labor force
CPI Inflation Rate 2.3% During contraction
Compare 1945 Post-World War II Demobilization Recession Against All U.S. Recessions (1929-2020)
| Recession | Peak to Trough | Duration | Real GDP Drop | Peak Unemployment |
|---|---|---|---|---|
| 2020 COVID-19 Pandemic Shock | February 2020 - April 2020 | 2 mos | -2.2% | 14.8% |
| 2007-2009 Great Recession & Global Financial Crisis | December 2007 - June 2009 | 18 mos | -4.3% | 10% |
| 2001 Dot-Com Bust & 9/11 Recession | March 2001 - November 2001 | 8 mos | -0.3% | 6.3% |
| 1990-1991 Savings & Loan and Gulf War Recession | July 1990 - March 1991 | 8 mos | -1.4% | 7.8% |
| 1981-1982 Volcker Disinflation Recession | July 1981 - November 1982 | 16 mos | -2.6% | 10.8% |
| 1980 Energy & Credit Controls Recession | January 1980 - July 1980 | 6 mos | -2.2% | 7.8% |
| 1973-1975 Oil Embargo & Stagflation Recession | November 1973 - March 1975 | 16 mos | -3.1% | 9% |
| 1969-1970 Recession | December 1969 - November 1970 | 11 mos | -0.2% | 6.1% |
| 1957-1958 Eisenhower Recession | August 1957 - April 1958 | 8 mos | -3% | 7.5% |
| 1953-1954 Post-Korean War Recession | July 1953 - May 1954 | 10 mos | -1.9% | 6.1% |
| 1945 Post-World War II Demobilization Recession | February 1945 - October 1945 | 8 mos | -11.6% | 4.3% |
| 1937-1938 Roosevelt Recession | May 1937 - June 1938 | 13 mos | -3.3% | 19% |
| The Great Depression (1929-1933) | August 1929 - March 1933 | 43 mos | -26.7% | 24.9% |