Abstract
National downturns in economic activity affect different parts of the country differently. These regional differences often reflect systematic tendencies arising from the regions' industrial structures and their long-term growth trends. However, regional growth trends may change. The 1980 and 1981-1982 recessions were unusual in a number of respects. The persistence of high interest rates in a weak economy had severe consequences for interest-sensitive industries, such as construction and durable goods manufacturing, and the downturns coincided with an upsurge in oil and gas development. Each of these developments had different implications for different regions, resulting in wide variations in regional economic behavior. In the Northeast, employment in March 1982 was about 0.5% below the level in early 1980; over the same period, employment in the East North Central states fell 5.5%, and employment in the West South Central region increased 7.5%.