Use the information found on the official Department of Labo

Use the information found on the official Department of Labor website, http://www.bls.gov/home.htm. Unemployment is one of the major concerns that people have in today’s economy, since losing one’s job can be one of the most devastating events a person can experience. But what do the numbers actually mean? What is the actual state of the economy, in terms of its ability to generate jobs for its citizens?

2. How is unemployment measured and reported?

3. What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect the basic unemployment rate reported in the media?

4. What is frictional unemployment? What is structural unemployment? What is cyclical unemployment? What economic policies should be used to deal with these types of unemployment? Which type is most prevalent in today’s economy?

5. Unemployment insurance is designed to help the unemployed. Do these benefits encourage or discourage a person from looking for work? How long should these benefits last? Does the existence of unions help or hurt the overall economy and the employment rate? Why or why not?

Solution

1. The US labor department provides unemployment numbers every month to show how many people are unemployed as % of the total labor force. Unemployment rate only conisders those people who are unemployment but also actively looking and willing to work.

Currently, US unemployment rate is 5% that is much better than the 2009-10 year at that time it was around 10%. Currently, US economy is in the recovery phase, but still it is very difficult to genrerate jobs at higher pace to provide jobs to all americans.

2.

the rate of unemployment is measured as the number of people unemployed divide by the labor force.If the number of people in the labor force rises, but a significant porition of the rise in the labor force is people who are unemployed , then both employment and unemployment could rise.

3.

The Bureau of Labor Statistics (BLS) states they officially designate someone as a discouragedw orker if they have not been actively seeking employment for one of the following reasons:

They believe there are no jobs available in their area or line of work.

They just cannot find work

They feel they lack the skills, training, or education needed for available jobs.

They think employers feel they are too young or too young.

They feel they are the subject to some other type of discrimination.(amosweb.com, 2015)

Discouraged workers are not included in the measure of unemployment. Discouraged workers affect theunemployment rate by 1 to ½ percentage points and could underreport the unemployment. Discouragedworkers were at 0.6% in 2008 and has increased to 10% today (rbc.com, 2015)

4.

Structural unemployment – depends on the social needs of the economyand dynamic changes in the economy. Example; advances in technology and changesin market conditions often turn many skills obsolete, this typically increasesthe unemployment rate.

Frictional Unemployment – caused because unemployed workers may not always take the first job they are offered because of wages and thenecessary skills needed.this type of unemployment can also be causedby failing firms, poor job performance, or obsolete job skills. Usually someone out of work, it takes time to find future employment, the timespent out of work is frictional unemployment

Cyclical Unemployment – an economy has the capacity to create jobs which increases economic growth. An expanding economy usually hasl ower levels of unemployment.an economy that is in a recession faces higherlevels of unemployment.example – due to a recession, many companylayoff workers and individuals loose their livelihood. There are more individuals looking for work than there are job openings due to thebreakdown in the economy.

The accomodative monetary policy and expansionary fiscal polciy can be used to deal with unemployment. Cyclical unemployment is more prevalent today due to slowdown in economy.

I would not be able to answer question 5 due to lack of time and as per Chegg policy we need to do only 1 question and you have asked here 5 questions at one go. Please ask sepreate questions.