Question

1. Why do you think that U.S. unemployment was so low back in May 2018? Do you feel like it would be easy to find a job if you wanted to?

2. Why do you think that U.S. unemployment was so low back in 2000?

3. What are some challenges that you would face as a business in today's unemployment environment? What's the connection to wages?

4. What are some challenges that you would face as an employee in today's unemployment environment? What's the connection to wages?

Answer 1

1. The Labor force has firstly contracted, secondly the US protectionism policies has created local jobs, thirdly cut in corporate taxes has led to better budgets on hiring, lastly the manufacturing activities have picked up which led to lowest unemployment rates. Searching and getting newer jobs have become much easier than before with high pay bumps however still remains herculean task for low skilled workers.
2. 2000 saw rise in dot com boom with excessive companies growth and sudden rise and demand for IT professionals which led to lowest unemployment rates.
3. Labor unions are biggest challenge to unemployment as companies have to deal with labor unions and as results release lower number of low skilled opportunities which is wages driven. For skilled employees the salary scale is huge and hence companies cannot afford bulk employment with rising losses and debt which is biggest challenge .
4. In todays market searching jobs and applying to high skilled jobs is big challenge as many candidates lack sufficient knowledge about job openings. With various backgrounds checks and hypercompetition in skills the employment opportunities have become much more difficult. Rising wages per hour as basic minimum have also led to rising salary prospects and due to better education and certification facilities skilled labor demands higher salary .