In particular: •  Some of the decline in employment may turn out to be persistent – for instance, because high unemployment may discourage workers from seeking employment or because workers' job skills may deteriorate during long spells of unemployment. Labour displacement associated with firm closures and mass layoffs tends to increase during recessions, adding to structural unemployment, particularly for older displaced workers.
•  The lower level of investment during the recession translates into lower productive capacity. In addition, plant closures mean that some capital is effectively scrapped (although this is not fully reflected in the measured capital stock). •  Total factor productivity may either increase or decrease, at least temporarily.