Question

Describe the recent rate of unemployment and how it has changed over the last year.

Explain what has driven the unemployment rate and any recent changes.

Describe the role of cyclical, structural and frictional unemployment in the current unemployment situation.

Forecast the unemployment rate over the next three years and explain your answer.

Describe steps the government should be making to improve the employment situation (if any).

USA

Answer 1

The unemployment rate in USA according to the current statistics is 14.70 percent. It dropped to 11.1 percent in June 2020. There is a huge fall in the jobless rate which is greater than expected. The unemployment rate in US measured through number of people actively looking for job as a percentage of total labour force. Comparing to last year, the unemployment increased to two digits. The fluctuations in recent unemployment rate were mainly due to seasonally adjusted unemployment rate. If comparing the situation of recession in 2008 with the current pandemic situation, the unemployment rate is higher in US economy. Unemployment in all among the group increased. The unemployment rate of women is greater than the unemployment rate of men. There is a higher rate of unemployment among the migrants comparing with the US born workers. But the unemployment rate among the educated people is less than others.
Cyclical unemployment occurred during the up and down of the economy and frictional unemployment because of normal turnover in labour market. The up and downs in US economy with respect to the current economic condition create these two types of unemployment. Educated people did not face the higher impact of the economic condition. Lock downs and other restriction did not create any serious issues among the educated and technically privileged workers.  
US government forecasts its unemployment rate as 3.5 percent in 2021, 3.8 percent in 2022 and 4.1 percent in 2023. US economy imposes several recovery policies among the workers to reduce the unemployment rate in future. According to the previous growth rate US can attain these reduction rates of unemployment. This will increase the overall development and economic growth of the economy. The primary method taken by government is expansionary monetary policy. This will reduce the fund rates and attract more workers to the labour market. The lower interest rates boost the housing market and also increase personal consumption spending. Increase the government spending over the creation of new jobs in the economy.