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Factors Affecting the Unemployment Rate

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971 words
971 words
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Unemployment rates refer to the number of people who have been verified as being with no employment and who have actively tried to secure employment within the current past without success. This means that these categories of people are willing and able to work but there are no employment opportunities. The unemployed group of people does not include people who have no jobs and have not been trying to get employed. Thus to be termed as unemployed there must be some demonstration of efforts to gain employment (Trading Economics).

The bureau of labor statistics has collected the primary data on the levels of unemployment so as to help the government plan. The table and chart below represents the secondary data on the changing rates of unemployment in the United States of America for ten years (2000-2010).

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Percentage Change 4.0 4.7 5.8 6.0 5.5 5.1 4.6 4.6 5.8 9.3 9.6

Within the chart, on the x-axis are the years while on the y-axis is the percentages of unemployment (Bureau of Labor Statistics).

The chart indicates that the unemployment rates have been rising steadily for the last ten years save for the small period between 2003 and 2006. This means that the percentages of qualified, able, and willing to work number of people has risen steadily over the last decade. The decade ends with a sharp rise of unemployment compared to the early years of the decade. The steady increase in unemployment rates have been attributed to a number of reasons. Some of them include:

Economic recession

Economic recession is a sphere financial crisis which affects the economic performance of a country (Visual economics). According to the chart, the unemployment rates in the Un...

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Mathzone, (2011). Collection of Statistical Data. Retrieved from:

http://www.emathzone.com/tutorials/basic-statistics/collection-of-statistical-data.html

Moffat Charlce, (2008). Economic Downturn. Retrieved from:

http://www.lilithezine.com/articles/politics/American-Recession.html

Northern Arizona University, (2001). Methods of Data Collection. Retrieved from:

http://www.prm.nau.edu/prm447/methods_of_data_collection_lesson.htm

Sengupta Saptakee, (2010). Causes of Unemployment. Retrieved from:

http://www.buzzle.com/articles/causes-of-unemployment.html

Trading economics, (2011). United States Unemployment Rates. Retrieved from:

http://www.tradingeconomics.com/united-states/unemployment-rate

Visual economics, (2010). A Decade of Unemployment. Retrieved from:

http://www.visualeconomics.com/a-decade-of-unemployment/

In this essay, the author

  • Explains that economic recession affects the economic performance of a country. the unemployment rate in the united states of america had decreased from 2003 to 2006, but then it sharply rose from 2007
  • Explains that unemployment due to economic inflation has been an issue for a long time all over the world.
  • Explains that welfare payments are the aids given by the government to secure the people who are jobless, but central to its objective, people become more dependent on the grant.
  • Explains that this particular method of data collection would ensure that the data that will be collected will give wide range of categories of people who are unemployed.
  • Explains that unemployment rates refer to the number of people who have been verified as having no employment and have actively tried to secure employment without success.
  • Explains that the unemployment rates have been rising steadily over the last ten years, except for the small period between 2003 and 2006. the decade ends with a sharp rise in unemployment.
  • Explains that technology has been changing rapidly and in a very fast rate, resulting in faster and more efficient tasks and assignments. this has caused many american people to lose their jobs to technologically efficient machines.
  • Opines that the data from the bureau of labor statistics would have been more useful if it contained the exact numbers of jobless people.
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