Essay on Unemployment rates

Submitted By janedoe_123
Words: 675
Pages: 3
Open Document
1. Describe the recent rate of unemployment and how it has changed over the last year.
According to the bureau of labor statistics, as December of 2014 the employment rate in the U.S reached 5.6%, when compared to of December 2013 we have seen significant drop as it was 6.7%. Within the last 5 years, this is the lowest unemployment rate we have seen, the highest unemployment rate in the US was back in October of 2009 when it was 10% and California was 12.1% (Bls.gov, 2015).
2. Explain what has driven the unemployment rate and any recent changes.
NBC reported in December the unemployment rate was at 5.6%, due to the creation of new jobs in different industries, but in the same report it was pointed out that the labor force size had gone down to 62%. So is this a true number?
3. Describe the role of cyclical, structural and frictional unemployment in the current unemployment situation.
Cyclical unemployment (no job vacancies), it never exist at the peak of economy while other forms of unemployment can be seen in a healthy economy, it is an indicator of demand (Levine, 2013). In the last few years, production slowed, people made less money, took fewer vacations, decreased use of restaurants and entertainments, stopped using services that they used in the past. All these factors contributed to lack of positions and less demand to fill these jobs
Structural unemployment, defined as the mismatched between the skills or location of job seekers and the positions available and their locations. This is due to obstacles getting the job rather than finding them, which prolongs the unemployment process. For example, one of the sectors that has seen little loss of employment is the computer design and IT, but this sector requires special skills and qualification that not everyone in the work force can do, but may be retrained, and that takes time and delays filling these positions (Effron, 2014).
Frictional employment, defined as the period of unemployment when people move between jobs or moving into the job markets. This usually takes less time than structural reasons (Levine, 2013)
4. Forecast the unemployment rate over the next three years and explain your answer.
Forecasting unemployment is a science by itself, different tools mat be used but all refer to the same metrics; trends of past years, the size of the population and the frowth in the last few years, size of labor force and the participants. In the last 5 years we noted a a trend, the unemployment rates dipped quickly after its peak and then the drop became less steep and eventually fluctuated arounf the inflationary flash point ( which varied over the years but economists agreed to a rate between 4-6%. So I believe the unemployment rate will go through its quarterly, seasonal
Show More

Related Documents: Essay on Unemployment rates

Essay on Unemployment Rate Percent

Colombia’s Unemployment Shannon Vauthier AIU Online Abstract As a member of the World Bank, it is important to know how the different aspects of the global economy are functioning. The different aspects are quantities of specific goods and services, Gross Domestic Product (GDP), unemployment, and inflation. The area the World Bank is focused on is South America. This report will concentrate on unemployment in Colombia. Colombia’s Unemployment The economy for every country is very similar but…

Words 1227 - Pages 5

Unemployment Rate After Recession

understand clearer how unemployment rate is associated with recessions, we will deeper analyze figure 4. The graph shows U.S. unemployment rate from 1948 to 2008 (60 year period). Figure 4. The U.S. Unemployment rate, 1948-2008. Source: Bureau of Labor Statistics; National Bureau of Economic Research. The shaded zones represent periods of recession. During every recession, without exception, the unemployment rate increased. As you can see, the most significant growth in unemployment rate is visible after…

Words 637 - Pages 3

Inflation and Unemployment Rate Ans Essay

CHAPTER 35 MULTIPLE CHOICE 1. The natural rate of unemployment depends upon: a. the rate of growth of the money supply c. the inflation rate b. the interest rate d. none of the above ANS: D 2. In the long run, the actual inflation rate depends primarily on: a. the expected inflation rate b. the Phillips curve trade-off c. the rate of growth of the quantity of money d. the unemployment rate ANS: C 3. The Phillips curve implies that the economy faces a: a. long-run trade-off between price inflation…

Words 791 - Pages 4

Unemployment: Unemployment and Minimum Wage Rate Essay examples

Unemployment is defined of those who are of working age and are actively seeking employment but do not currently have a job. It can be calculated using the ILO labour force survey or by looking at the claimant count. There are two major causes of unemployment, that caused by low aggregate demand and that caused supply problems in the economy. One obvious cause of supply related unemployment is structural unemployment caused by immobility of labour. This unemployment results because although jobs…

Words 570 - Pages 3

Essay about Macroeconomics: Unemployment Rate

Frictional unemployment is caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs. Structural unemployment is a the unemployment of workers whose skills are not demanded by employers, who lack sufficient skills to obtain employment, or who cannot easily move to locations where jobs are available. Cyclical unemployment is unemployment caused by a decline in total spending (or by insufficient aggregate demand). Seasonal unemployment is caused by…

Words 497 - Pages 2

Money and Countries Unemployment Rate Essay

the dollar to be worth less than what it was worth before. We can't buy as much with the dollar during times of inflation. 5. I would like to move to New Zealand, I am researching job and things about the area. I would look at the countries unemployment rate, this would help me see the chances of me getting a job out there. What is the cost of living relative to wages? If wages are lower than the cost of living, then you don't want to live in that country. If wages are high relative to the cost of…

Words 469 - Pages 2

Macro Paper How unemployment rate 2010

HEADER: HOW UNEMPLOYMENT RATE AFFECT COUNTRIES How the Unemployment Rate Affects a Countries Economy In 2010 Abstract This paper is about how the high unemployment rate has an affect on the economy. The high unemployment rate had an affect on the Gross Domestic Production as well how it had an affect on the economy as well. This paper covers when the Gross Domestic Production went up the unemployment rate had gone down as well. The high unemployment rate also had…

Words 1520 - Pages 7

Essay about Student: Economics and Unemployment Rate

are experiencing the weakest recovery on record for the United States. Last quarter’s advised GDP growth was only 2.8 percent. This is far below the average 5 or higher percent growth rate after recession. The weak recovery has been a major reason of another big problem for our economy—the job market. Unemployment rate has been staying at wildly 9% and above and there isn’t a sign of strong rebound in the foreseeable future in the job market. While all these are big problems that our economy is facing…

Words 664 - Pages 3

Essay on Unemployment Rate Among Blacks and Why It Is High

There has been a constant fall in unemployment amongst black people. Society and their stereotypes about black people have a lot to do with it. Discrimination is also a reason. Millions of African Americans live in communities that lack access to good jobs and good schools and suffer from high crime rates. African American adults are about twice as likely to be unemployed as whites, black students delay their white peers in educational completion and achievement, and African American communities…

Words 1298 - Pages 6

Essay about Economic: Economics and Moderate Unemployment Rate

the fund rate has been down to zero since then. The unemployment rate has kept rising from under 5% to more than 10% and back to 8.3%. The F.E.O said, 8.3% was great and QE has been effective. The dollar has been devalued more than 40%, but the deficit current account has been solved. The economy shrank to negative figure, but improved within a year. Now we have slow growth and inflation. The economy of the United States ia a mixed economy and has maintained a stable overall GDP growth rate, a moderate…

Words 616 - Pages 3