Unemployment Why does the government collect statistics on the unemployed? Why do we care?
Unemployment The Government collects statistics on the unemployed for many reasons . Some areas to look at are. Is the unemployment rat increasing or decreasing? Is it in just one area or nation wide? Who is losing there jobs? Should the Government get involved?
Effects of Unemployment Production loss. The unemployed person is not helping the economy Spending loss. The unemployed person most likely has no income so they have less to spend and stimulate the economy in an essence, taking away from someone else’s job.
Who is considered to be Unemployed and who is considered to be employed? People with jobs are employed. People who are jobless, looking for jobs, and available for work are unemployed. People who are neither employed nor unemployed are not in the labor force.
Unemployment Unemployed are those who are currently seeking work or have been with in the last four weeks. People not in the labor force are. Those under 16 or confined to prison or nursing home. Active duty military. Active Student Retired
Unemployment Unemployment starts a snowball effect Once people become unemployed they spend less Spending less means other companies don’t make as much money. This then leads to other companies down sizing.
Why have the unemployment rates in America suddenly increased?
One of many reasons for the sudden increase in the unemployment rates was the construction surge. Construction workers mainly were a large part. Many workers without a college education found themselves doing construction work for the last ten years that has been a huge booming industry.
When the construction slowed many of these workers lost there jobs. Since they had no other job experience and had no college degree this made it very challenging for many of them to find work.
Again there is a snowball effect with the unemployment. as soon as word gets out people get scared and don’t want to spend money or hire because of the “News” of a recession . When people and businesses do job cutting and less spending then this leads us in the direction of a recession.
Similarities of the Recession and the Great Depression The Stock Markets Drops In the depression it crashed. This hurts the top 1% of the high income earners Government Policy The Obama administration plans to raise taxes on the affluent, cut them from everyone else and take other steps to reduce inequality. Education People that would have normally gone into the work force are now going back to school. This will provide our economy with more educated workers in the future.
Some Websites to Follow http://topics.nytimes.com/top/reference/timestopics/subjects/u/unemployment/index.html (The New York Times) www.bls.gove (Bureau of Labor Statistics)