Unemployment : The Hardest Work

784 Words Jun 4th, 2015 4 Pages
Unemployment: The Hardest Work Macroeconomics studies the behavior and the performance of the economy as a whole. Two of the main topics analyzed in macroeconomics are the long run economic growth and short run fluctuations in output and employment associated with business cycle. One of the problems evidenced over the course of business cycles is unemployment. This paper discusses how unemployment is measured, what are the different types of unemployment, and the cost of unemployment for a society.
One of economists’ roles is to collect and analyze data, such as GDP, unemployment rate and inflation, in order to comprehend how an economy is performing and how it can be improved. When measuring unemployment, the U.S. Bureau of Labor Statistics (BLS), conducts a survey and determines who are employed and who is not employed. During their analysis, BLS divides the population in three groups. The first group includes all the individuals less than 16 years of age and people who are institutionalized. The second group, labeled Not In Labor Force, includes people who are able to work but are not employed and not looking for work, such as full-time students. The third group is known as labor force, and it “consists of people who are able and willing to work”, which includes people who are employed and those who are unemployed but seeking for work (McConnell, 594). Economists use unemployment rate values as an indicator of the economy’s performance. The rate of unemployment is…
Open Document