SU_ECO2072_W2_A1_Dunn_K - Unemployment Concerns in the...

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Unemployment Concerns in the Economy By Kimbra Dunn Principles of Macro-Economics
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2 Unemployment Concerns in the Economy By Kimbra Dunn Principles of Macro-Economics With the economy constantly growing, many concerns arise with such growth. The most controversial concern with the economy is employment. Employment is when households supply labor to firms which pay wages in return. Unemployment when households supply more labor than is demanded by the firms. The unemployment rate is the most commonly used measure of unemployment. It is the percentage of workers in the labor force who do not have a job (SUO2015). Labor force participation rate is the percentage of working age persons in an economy who are employed and unemployed but looking for a job. As of October 2015, the United States labor force participation rate is 62.4%. For the same month in 2008, the amount of United States people working or seeking employment is 66.4%. This is a 4.4% decrease in seven year. This doesn’t necessarily mean that the unemployment rate is increasing nor that the economy is getting worse. The decrease of the labor force participation rate just means that there is an increase in of retired men and women, students, or discouraged workers. How the unemployment rate is measured depends strictly on the geographical standards. Based on the location, one to three different types of estimation systems is used and evaluated monthly. These procedures are developed using statistical models that incorporate current and
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