A Brief Note On Unemployment And Unemployment Rate

This article is related to macroeconomic which examines how the economy functions and its performance. Unemployment as a whole is related to macroeconomics. There are many reasons as to why a person could be unemployed. He or she could be retrenched, fired or still be looking for a job. However, if

Unemployment can affect the economy in a number of ways such as increased government borrowing. Higher unemployment will lead to lower revenue

Because of the growth of the high unemployment rate employers may be unwilling to hire people. With more people out of work, more civilians face an unfortunate standard of living and lower quality of life. Generally, when the unemployment rate rises, consumers have less spending power. A lower unemployment rate, infers more people have jobs and are enjoying a better quality of life and higher standard of living. It also means that companies, firms, and organizations are receiving more money. When more people have jobs, they acquire more money and spend it. Such places include stores, malls, and fast food restaurants. This spending results in economic growth throughout our economy. Unfortunately, there will always be a percentage of people who do not have a job which implies that the economy will never experience economic growth to its full extent.

A condition that has existed since the beginning of commercialization, unemployment has been in our history since its monumental recognition in 1929. The Great Depression is really when unemployment became a real issue and its highest peaks where between 1932 and early 1933 when the average rate of unemployment was 24.9%. Fast forward almost 80 years and unemployment is still a political issue whose rate has experienced a roller-coaster ride of highs and lows. Unemployment has many forms, but it is technological unemployment, that is a crisis which if declined will lead to an excellent and a benevolent rise to our nation’s economy.

The second type of unemployment is also one that can be easily grasped by most people. This type of unemployment is frictional unemployment and is defined as, “the unemployment which exists in any economy due

There are three different kinds of unemployment that affect our economy: frictional, cyclical and structural. Frictional unemployment occurs when there is a time laps between being employed and looking for work. This term can also be referred to as search employment because it is the time spent searching for a place of employment. One example of this would be a student taking time off of work to finish college and get a 4 year degree. Usually, it takes a lot of time and dedication to finish the last years of school, so some students tend to go to school full time and work part time or not at all. This type of unemployment is also classified as voluntary unemployment because this period of unemployment is at the discretion of the person to some small degree. Secondly, there is cyclical unemployment which changes depending on the business need; for example, workers are laid off when business is bad - then

Economic policy of every country has different aims that usually include the following ones: sustainable growth and development (increase in output (GDP) growth), price stability (inflation targeting), high employment etc. The policymakers have different tools to manage these issues, primarily by influencing the aggregate demand and supply, such as interest rates, requirements to the bank reserves, tax rates etc. Therefore, this is crucial to understand how these macroeconomic indicators are interconnected, such as for example output and unemployment, unemployment and inflation, and the mechanism of policy actions in each case. Thus, the aim of this essay is to explain how the government should conduct the economic policy in order to achieve the aims, focusing particularly on the unemployment.

On the outstanding work “unemployment and job creation programs: is there a skills gap?” by Belinda Shipps and Robert L. Howard four types of unemployment are identified: Frictional, seasonal, structural, and cyclical. Frictional

With there being a variety of labels for unemployment I believe that frictional unemployment best describes what the U.S. is experiencing. Frictional unemployment is can be viewed as more of a desirable state of unemployment because it was chosen by the person themselves. Frictional unemployment typically doesn’t last for long periods of time, but instead a short period of time. The individuals that fall under this type of employment are normally waiting for accept a job soon or they could be searching for a job. It may not sound like the best decision to make, but it has been found that most individuals move to better positions. This type of employment benefits both the employee and the employer because the employer has a qualified worker

With an unemployment rate of 5% and a population of about 326,079,646 people, there can be about 163,039,823 unemployed people in the United states. There are many things that the United States government can do to reduce Unemployment. In order to reduce the unemployment rate in the United States, the United States government could reduce the federal minimum wage to allow employers to hire more employees because of the money that they save, increase the number of long term construction jobs, and decrease the number of jobs that are outsourced to other countries.

Frictional unemployment occurs when people leave their job and search the labour market for something better. This is more of a problem when the economy is doing well than in a recession when fewer jobs exist, so workers tend to hold onto jobs if they have one. Frictional unemployment can be reduced by making information readily available for those looking for new jobs, for example in Job centres or on the internet and by making it difficult to claim benefits when unemployed so unemployed people have to get work in order to have a decent standard of living.

The United States has been experiencing the lowest rates of unemployment it has seen in several years. A person is considered unemployed if he/she is of working age and is actively looking for a job but cannot find one. An unemployment rate is found by dividing the number of workers that are unemployed by the number of people in the labor force and then multiplying this number by 100%. A labor force can be defined as all the people in a country who are able to work, whether they have a job or not. There is a “natural” rate of unemployment which indicates that there is no way to get the country at a 0% unemployment rate because of scenarios such as people who can’t find jobs because of a lack of information, people who do not have the motivation

Unemployment mostly occurs when one has lost his/her job and spends quit time looking for a new job. “The U.S. unemployment rate was certainly too high in 1975, and most economists would agree that it is too high today.” ( Lucas Jr, P.257-263). Even though

According to one article, “Structural unemployment occurs when certain industries decline because of long term changes in market conditions” ("Unemployment types", 2017). More specifically, as Amadeo states, structural unemployment occurs when “Factories move to cheaper locations” (2017) and more efficient options (such as newer technologies, more skilled employees, etc.) are undertaken. Moving on to the minor types, surplus, being the first, is “caused by minimum wage laws, unions and wage/price controls. When wages are set at a high level, unemployment often results” (Amadeo, 2017). The second minor type is demand deficient unemployment. When there is less demand for a particular product, “firms sell less and so reduce production. If they are producing less, this leads to lower demand for workers” (Pettinger, “Demand Deficient Unemployment”, 2017). Therefore, as the name implies, this is caused by an unmet demand when compared to the people in that specific line of work. The third minor, but also major, type is full employment, which is known to be “devoid of cyclical or deficient-demand unemployment” ("Full Employment", 2017), according to one source, and is not simply, as the name suggests, where everyone has a job. In addition, “full employment means that unemployment has fallen to the lowest possible level without provoking inflation” (Palmer, 2016). Regional unemployment is the fourth minor type, being impacted by structural unemployment and,

Unemployment describes the state of a worker who is able and willing to take work but cannot find it. As indicated by the unemployment rate and other yardsticks, unemployment is an important measure of the economy's strength. A high unemployment rate generally indicates an economy in recession with few job opportunities, while a low unemployment rate points to an economy running at or near full throttle. A low unemployment rate has its downside for stock prices, however: it may be a harbinger of higher interest rates that will slow both an overheated economy and the rise in equity values. In recent years, there's been much controversy over what the true level of U.S. unemployment is. Some economists have relied more on the government's "establishment survey data," which emphasizes the number of new jobs, rather than "household survey data," which is used to compute the headline unemployment rate. Moreover, new technologies and lifestyle changes, which are increasing the number of temporary, contract, and self-employed workers, are making it more difficult to define what unemployment is.