Question

Come on now, get a job. In this activity, you will select a country and explore the concepts of unemployment and the phases of the business cycle as it relates to the economic well being of your selected country.

Locate a recent article (published within the last year) that addresses the unemployment theory and unemployment rate of your selected country.

You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze your selected country's unemployment rate and how the key economic indicators align with the current phase of the business cycle. Include the following in your discussion.

• Identify how unemployment is calculated.
• Describe the different types of unemployment and state which type of unemployment you believe impacts your chosen country the greatest.
• State your selected country's unemployment rate.
• Discuss the four phases of the business cycle.
• Align the current phase of the business cycle with your selected country.

Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.

Answer 1

Article -The true US unemployment rate, March 2019. Dated 8th August 2019, By  John Komlos.

In order to calculate the natural rate of unemployment it is necessary to calculate and add the number of frictionally unemployed to the number of structurally unemployed and then divide by the total labor force.The unemployment rate can be calculated by the formula, unemployment rate =number of unemployed divided by labor force which is the sum of unemployed and employed persons.

The unemployment rate of America in April 2020 is 14.7 %. The country has such high rate of unemployment because of the Covid 19 pandemic. The country has entered the recession stage of the business cycle due to the pandemic.America is facing Cyclical unemployment at present because of the recession.

There are 3 major types of unemployment , frictional, structural and cyclical unemployment. The economy experiences many ups and downs which lead to cyclical unemployment .These cycles give rise to unemployment . Recently the economy of America entered recession and many people lost their jobs . This is termed as Cyclical unemployment. Frictional unemployment occurs due to the normal turn over in the market for labor. Workers take time to find a new job when they change a job and this is frictional unemployment. Structural unemployment occurs when there is a mismatch between the skill workers have and the skills required by the employer.

America mostly experiences 3 types of unemployment , Frictional, Cyclical and Structural but the most common is Cyclical unemployment as there are ups and downs in the economy.

The unemployment rate of America in April 2020 is 14.7 % according to the Labor Bureau statistics.

Business cycle refers to ups and downs in the economy.The 4 phases of business cycle are Peak, Recession , Trough, Expansion.Peak is the highest phase of business cycle when output is maximum , employment is at full employment level and there is inflationary rise in prices..Following peak is recession when growth slows down and employment falls and there is less pressure on prices.The slowing down of the economy stops at trough and after that expansion will emerge when there will be increase in employment, economic growth and upward pressure on prices.

At present America is in the recession phase and so unemploymet is very high. There is less economic growth in the economy.

Reference -The business cycle, definition and phases.