The continues to be a plentiful supply of rhetoric that factor supply doesn't matter during a recession, yet no evidence. Take, for example,
To the contrary, there is plenty of evidence that supply during this recession mattered as much as ever: here, here, and here."When the economy is booming, and lack of sufficient willing workers is limiting growth, generous unemployment benefits may keep employment lower than it would have been otherwise. But as you may have noticed, right now the economy isn’t booming — again, there are five unemployed workers for every job opening. Cutting off benefits to the unemployed will make them even more desperate for work — but they can’t take jobs that aren’t there."