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National Bureau of Economic Research
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National Bureau of Economic Research

Private US research body that officially dates recessions; published 2026 study on US-Europe GenAI adoption gap.

Last refreshed: 8 June 2026 · Appears in 1 active topic

Key Question

Why do US workers use AI more than Europeans — and does it come down to management, not regulation?

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Common Questions
How does the NBER decide when a recession has started?
The NBER Business Cycle Dating Committee uses a broad set of monthly indicators including employment, real income, and industrial production. It does not require two consecutive quarters of negative GDP.Source: NBER
Is the US in a recession after Q1 2026 GDP contraction?
Not yet by NBER standards. The Bureau of Economic Analysis recorded a 0.3 per cent contraction in Q1 2026, but the NBER requires a sustained period of deterioration across multiple indicators. A second consecutive negative quarter would strengthen the case.Source: Bureau of Economic Analysis / NBER
What is the difference between a technical recession and an NBER recession?
A technical recession is two consecutive quarters of negative GDP. The NBER uses broader monthly indicators and can declare a recession without two down quarters, or decline to call one that technically meets the popular definition.Source: NBER

Background

The National Bureau of Economic Research (NBER) is a private, non-governmental, nonpartisan research organisation founded in 1920 and headquartered in Cambridge, Massachusetts. Its Business Cycle Dating Committee holds the sole recognised authority to declare the start and end dates of US recessions, using broad monthly indicators — employment, real income, industrial production, and retail sales — rather than the popular two-consecutive-quarters GDP rule. In the 2026 midterm context, the committee's pending verdict on the Q1 2026 GDP contraction of 0.3 per cent is directly linked to Democratic messaging on tariff damage.

Beyond recession dating, the NBER publishes working papers across all fields of economics. Its June 2026 paper (w34995) found that 43% of US workers use generative AI at work, compared with 32% across six European countries surveyed in early 2026. The study attributed the US-Europe gap primarily to management practices rather than to regulatory differences — a finding that counters the industry argument that EU AI regulation is what suppresses European adoption.

The NBER's determinations carry weight across multiple Lowdown topics. Its recession calls affect Federal Reserve communications, official policy language, and academic research globally. In the labour market debate, the w34995 management-practices finding intersects directly with work by Davenport, Brynjolfsson, and HBR on why AI deployment rates remain lower than AI-layoff rhetoric implies.

More questions
When did the NBER last call a recession?
The most recent NBER recession was the COVID recession: February to April 2020. Before that, the Great Recession ran December 2007 to June 2009.Source: NBER
What did the NBER find about US versus European AI adoption at work?
An NBER working paper (w34995) published in 2026 found 43% of US workers use generative AI at work versus 32% in six European countries. The study attributed the gap to management practices rather than regulatory differences.Source: NBER
Why does management practice explain AI adoption rates better than regulation?
The NBER w34995 paper found that after controlling for industry and country, management quality differences explained a large share of the US-Europe AI adoption gap. European regulatory frameworks had less explanatory power than expected.Source: NBER
Source Material