It is widely recognized as a key indicator of labor market performance. A closely watched economic indicator, the unemployment rate attracts a great deal of media attention, especially during recessions and tough economic times. Why Does the Unemployment Rate Matter? Unemployed workers also lose their purchasing powerwhich can lead to unemployment for other workers, creating a cascading effect that ripples through the economy.
You just want to get back to work! But an understanding of the larger forces at work may help you to plan your future. For example, if you have been recently laid off from your manufacturing job, you may want to get trained in a new career rather than wait around for another manufacturing job that may never come.
Ways to Measure Employment We hear on the news that the U. This is considered very high. Historically in the U. In reality, the ten percent rate means that in the spring of there were about 6.
But this figure does not include the millions more who are "underemployed" working a part-time or low-paying job because nothing else was available and those who want work but have given up looking. It also does not count those adults who are outside of the labor force, and have no job and are not looking for one.
Many of these people are going to school, are retired, have family responsibilities, or have a physical or mental disability. Some simply elect not to work, preferring to be dependent on society for survival. There are many ways to calculate the unemployment rate. Unemployed workers are typically defined as those who are currently not working but are both willing and able to work for pay, currently available to work, and have actively searched for work.
The unemployment rate is expressed as a percentage, and is calculated as follows: Social insurance statistics are computed based on the number of persons collecting unemployment benefits. This method has been criticized because the long-term unemployed drop off the unemployment rolls and are no longer counted.
Labor force sample surveys capture the most complete and comprehensive results and enable calculation of unemployment by different group categories such as race and gender.
Public polling asks a random sample of people about their job status. The survey gathers employment statistics monthly based on a sample of 60, households.
Apr 06, · The % unemployment rate is the lowest since March, Private employment was actually up by ,, but the BLS deducts the loss of jobs . supply of currency. The correlation of such supply and demand depends on several factors. Exchange rate reflects its relationship with other economic categories - cost, price, money, interest rate, the balance of payments (Boykorayev, , p. 9). There is no consensus in the literature on the factors affecting exchange rates and their volatility. It states and explains the unemployment rate and the current employment status of the masses i.e. the percentage of unemployed people, the total number of new jobs created in the previous month and the average number of hours worked by the employees.
Official estimates are generated by a using a combination of data derived from one or more of the aforementioned methods. Discounting those people who choose not to seek employment, in modern industrialized nations it has been a historical reality that there is always some level of unemployment-that is, there are always some people who are seeking jobs.
But there are several powerful forces that can create fluctuations in unemployment. As recently as a few years ago, DVD rental companies like Blockbuster were growing and thriving because they capitalized on what was at the time an exciting new technology: Now many of these same companies face layoffs and even bankruptcy because the technology is outdated.
Even well-managed companies are vulnerable to larger economic downturns. A company that produces the best widgets in the world will suffer if their customers can no longer afford to buy them. The terrorist attacks of September 11 shut down the entire industry for a week, and the resulting security measures and fuel prices drove up costs in what was already a cost-heavy business.
If you are a Detroit auto worker, you know that the auto business may recover, but it will never be the same as it was in If you can get training for another career field, it might be a good idea.Apr 06, · The % unemployment rate is the lowest since March, Private employment was actually up by ,, but the BLS deducts the loss of jobs .
FACTORS RELATED TO THE UNEMPLOYMENT RATE 5 in the labor force. This displays a relationship between demographic factors and the unemployment rate.
The unemployment rate is also assumed to have a connection with wage growth. More specifically, unemployment has been found to have a negative correlation with wage . unemployment rate would fall as quickly after the recession, but the speed of improvement has been more typical of the so-called jobless recoveries from the and recessions.
Historically in the U.S., the unemployment rate hovers around five percent-about half as much. In reality, the ten percent rate means that in the spring of there were about million Americans who were classified as "long-term unemployed," that is, people who were out of work for longer than 27 weeks.
The BLS notes if at an unemployment rate of %, the 90% confidence interval is about +/- , for the monthly change in unemployment, and is about +/- % for the unemployment rate. In. Understanding the Factors Affecting The Unemployment Rate Through Regression Analysis An Individual Report Presented to The Faculty of Economics Department.