The Reality of Unemployment Essay

1968 Words 8 Pages
Unemployment is far more vital to the economy and plays a huge role in keeping our economic system revolving across the United States. The percentage of unemployed workers in the labor force as a whole distinguishes what the national unemployment represents. Unemployment is predominantly brought to the attention of the public when the economy is in distress and is widely debated between economists trying to dispute their apprehensions. Disconcerting issues consist of those who are unemployed losing wages that support their families, which in turn causes the nation as a whole to lose its contribution to the economy. When the unemployed lose their purchasing power, firms may begin layoffs, causing a cascading effect of catastrophe through the economy. The economy losing contribution limits the goods and services that could have been produced and bought, disturbing the circular flow of the economy. These concerns play a massive role in why understanding the depth of unemployment is so vital to the United States. To better understand how unemployment influences our economy, it is imperative to begin with the basics. You need to understand how the unemployment statistic are compiled, what is the labor force is consisted of, and the different measurements used to calculate unemployment. These factors break down the complexity of unemployment to better understand the influences unemployment has on our economy.
The breakdown of unemployment begins with, where the statistics of…