The basic definition of unemployment is without work. In macroeconomics, unemployment has a very precise definition and different types of unemployment. Unemployment is defined as the total number of adults (aged 16 years or older) who are willing and able to work and who are actively looking for work but have not found a job. (Miller 140).
Unemployment refers to the total percentage of a country’s workforce that is unemployed and is looking for a paid job. The rate of unemployment is the percentage of the whole population that is actively seeking paid employment (Coyle 2). The ratio is reached at by dividing the number of jobless people by the already working individuals in the workforce. In statistics, a rising unemployment rate is an indicator of a weakening economy (Mankiw 16).On the other hand, a falling rate indicates that the economy is growing.
First, I will discuss the time period between 1973-1974. Because the unemployment and inflation rates are higher than normal, we can assume that the aggregate-demand curve is downward-sloping. When the aggregate-demand curve is downward-sloping, we know that the economy’s demand has slowed down. When the economy’s demand has slowed down, businesses have to choice but to raise prices and lay off workers in order to preserve profits. When employers throughout the country respond to their decrease in demand the same way, unemployment increases.
The labor force participation rate dropped from 63 percent in 2007 to 58.5 percent in June 2010,even while the unemployment rate then doubled . Since the onset of recession, job competition has similarly greatly increased.
Layard, Richard, Stephen Nickell, and Richard Jackman. 1991. Unemployment: Macroeconomic Performance and the Labour Market. Oxford: Oxford Univ. Press.
The definition to unemployment given by the Bureau of Labor Statistics in the article is as follows: “People who had no employment during the reference week and that were available for work at the time, they made efforts to find employment sometime during the four week period ending with the reference week.” The article argues that the definition of unemployment given by the Bureau of Labor Statistics limits the number of individuals who can participate in the survey therefore, misrepresenting the nation’s perception towards the rate of unemployment.
Percentages of job loss are reaching large amounts and large numbers. According to the Bureau of Labor, in the past month the unemployment rate was at 9.7 percent. That number is rising mostly in the construction line of work because so many Americans work for the construction companies and when plans go wrong and projects don’t get built and or finished they start to lose jobs (“Employment”). They also say that the amount of unemployed people had reached around 14.9 million last month and those who were without a job who remained jobless for 27 weeks or higher was at 6.1 million. Also the number of people who work part time had increased from 8.3-8.8 million because so many workers have had their work hours cut and they still needed to make a decent sum of money (“Employment”).
The article entitled “February Best Month for Hiring Since 2006” by Andrew Soergel is an article that not only gives hope to Americans all over the country, but also is an article that emphasizes the importance the government has when it comes to making changes to policies that effect the participation in employment. During this time, many Americans have had a hard time with employment. Obviously, this affects a person’s a life in a huge way. The article “February Best Month for Hiring Since 2006” shows the many ways that being employed or not being employed can affect a person’s life. Not only does this article emphasize that point, but it also does a really good job of showing how the government affects employment as a whole. It amazes me
During the end of 2007 the unemployment rate spiked from just under five percent to over seven in the course of one year and was expected to spike in the coming months. “Among the unemployed, the number of job losers and persons who completed temporary jobs rose over the month by 315,000 to 6.5 million in December 2008. Over the past 12 months, the size of this group has increased by 2.7 million. The number of long-term unemployed (those jobless for 27 weeks or more) rose to 2.6 million in December and was up by 1.3 million in 2008.”(Bureau of Labor Statistics). These statistics show times like these were really tough for many American households. Men who wanted nothing more than to be able to support their families couldn’t because there were no jobs available.
One problem faced today is the number of Americans unemployed and how many families who are suffering from the poverty rate. Unemployment is a problem discussed and seen throughout America. With the unemployment rate hitting 6.6% in January 2014, the nation should focus on lowering that number so welfare can be a last option for the unemployed. Blacks have the highest unemployment rate of 12.1% followed by Hispanics with...
To outline the current economic condition, unemployment is currently 7.0% as of November, according to the Bureau of Labor Statistics, well above the Fed’s long term goal of 5.0%. Current inflation is 1.0%, below the Fed’s goal of 2.0%. GDP growth for Q3 of 2013 was 3.6%, above the Fed’s predictions. The current economic recovery has been much more sluggish than other recoveries. It has been more than six years since the recession and we have yet to recover all the jobs we lost. According to the Pew Research Center, it has taken on average less than 10 months from the start of recovery to return to the previous jobs peak in every recession from 1948 to 1982. The 1990 recovery took 21 months and recovery from 2001 took 18 months. A growing concern of economists is the growing length of recoveries and its effects. The current recovery has been going on for more than three and a half years, and we have still not reclaimed all lost jobs. As the Fed struggles to combat the recession with fiscal policy, policy makers argue over what exactly causes unemployment.
Mouhammed, A. H. (2011). Important theories of unemployment and public policies. Journal of Applied Business and Economics, 12(5), 100-110.
Daly, Mary, Bart Hobijn, and Rob Valletta. 2011. “The Recent Evolution of the Natural Rate of Unemployment.”