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What Is the Impact of Oil Supply Shocks on Employment?
As anyone who owns a car knows well, the price of oil can be extremely volatile. But do sudden shocks in the supply of oil affect something like jobs? In a December Regional Economist article, Bill Dupor, an economist and senior economic policy advisor at the St. Louis Fed, examined the relationship between oil and employment. Dupor first looked at the nominal price of U.S. oil over nearly six decades, as shown in the FRED chart below that spans the period from 1966 to November 2022. He noted that sharp jumps in the price of oil often preceded a recession, pointing out two recessions that followed oil supply shocks ... (full story)