Question

1.

• Describe the Unemployment among the different age groups. Describe the Unemployment among different races. Describe Unemployment based on education. Describe the current Unemployment's effect on society and the economy in the long run.
• You are in charge of recommending a new economic policy that will directly decrease the future's unemployment rate. Explain what your policy would look like.
• Describe your timeline for effect on unemployment rates; will it be right away, or will it be a long-term solution? Why?

Answer 1

Ans. A similar trend of shift of unemployment towards higher age groups was also seen for urban areas. The share of unemployed urban males in the 15-19 age group reduced to 14.73 per cent in 2017-18 from 23 per cent in 2004-05, while that for 20-25 age group was 36.12 per cent in 2017-18 from 40.6 per cent in 2004-05.
The share of unemployed urban males increased in the 25-29 age group and 30-34 age group to 26.20 per cent and 8.93 per cent, respectively, in 2017-18, from 19.2 per cent and 6.5 per cent, respectively, in 2004-05.
The share of unemployed urban females reduced in the 15-19 age group to 5.81 per cent in 2017-18 from 12.6 per cent in 2004-05. For 20-24 and 25-29 age groups, however, the share of unemployed urban females went up to 41.07 per cent and 30.43 per cent, respectively, in 2017-18, from 39 per cent and 23 per cent, respectively, in 2004-05.

This report provides a state-by-state breakdown of unemployment rates by race and ethnicity, and racial/ethnic unemployment rate gaps for the fourth quarter of 2018. While there have been state-by-state improvements in prospects for black and Hispanic workers, their unemployment rates remain high relative to those of white workers. Following are some key highlights of the report:

While the African American unemployment rate is at or below its pre-recession level in 18 states (of the 21 states and the District of Columbia for which these data are available), in 14 states and in the District of Columbia, African American unemployment rates exceed white unemployment rates by a ratio of 2.0-to-1 or higher.
The District of Columbia has a black–white unemployment rate ratio of 5.7-to-1, while Alabama and Mississippi have the highest ratios among states (3.0-to-1 and 2.8-to-1, respectively).
The highest African American unemployment rate is in the District of Columbia (11.8 percent), followed by Pennsylvania (8.9 percent), Illinois (8.8 percent), Louisiana (8.0 percent), and Mississippi (7.7 percent). The highest Hispanic state unemployment rate is in Washington (7.5 percent), followed by Pennsylvania (7.1 percent), Arizona (6.3 percent), Connecticut (5.8 percent), and Oregon (5.8 percent). Meanwhile, the highest white state unemployment rate is 4.6 percent, in West Virginia.

Graduates, with a share of 16.3 percent, made up the highest unemployment rate in 2019. This was followed by individuals with a post graduate degree or above with a share of 14.2 percent. Therefore, the unemployment rate in the country was higher among youth with higher educational qualifications.
Unemployment made worse by pandemic
The unemployment rate has been growing in the country for the last couple of years. The rates were higher in urban areas than in rural areas and saw a similar trend among gender. The unemployment situation in the country was the major cause of worry and anxiety among many Indians. The coronavirus (COVID-19) pandemic had only accelerated the unemployment rates, and the situation is expected to improve with many joining the labor force in the days following lifting of lockdown restrictions.

High unemployment indicates the economy is operating below full capacity and is inefficient; this will lead to lower output and incomes. The unemployed are also unable to purchase as many goods, so will contribute to lower spending and lower output. A rise in unemployment can cause a negative multiplier effect.

Yet Friday's jobs report suggests such concerns are premature. Employers added 209,000 jobs, after a solid gain of 231,000 in June, the Labor Department said. The unemployment rate ticked down to 4.3 percent, from 4.4 percent, matching the low reached in May.
The U.S. economy is benefiting from steady growth around the world, with Europe and Japan perking up and China's economy stabilizing. Corporate revenue and profits are growing too, and the stock market has hit record highs.
Economists were particularly encouraged by the fact that more Americans are coming off the sidelines and finding jobs. For the first few years after the recession, many of the unemployed stopped looking for work.
Some were discouraged by the lack of available jobs. Others returned to school or stayed home to take care of family. The government doesn't count those out of work as unemployed unless they are actively searching for jobs.