Although some European countries such as France, Italy, and Spain are considered developed and rich economies,...

Although some European countries such as France, Italy, and Spain are considered developed and rich economies, their unemployment rates have been higher in recent decades than in the United States. What could be behind this? Having a lower unemployment rate necessarily means that the population of this country are in a better condition? Do you think you are better off for living in the U.S. today as the unemployment rate here is historically at lower rates? Provide arguments for your position.

Expert Solution

Most of the EU countries face a high unemployment rate for more than 30 years. Unemployment took place in the late 1970 and early 1980 and most of the countries get affected by this. The current unemployment is very high that is 8%. Most of the unemployment rises because of cross country differences. For example, Ireland and Netherland faced low unemployment as compared to Spain and Italy. And most important the duration of unemployment is longer and which also increases the rate of unemployment.

Low unemployment is always a sign of a good economy in any country.But a very low rate may bring the inflation or decreased productivity in the country.But unemployment rate directly affects the disposable income and purchasing power.Low unployement also means that jobs are surplus as per the demand and company or industry has to pay high wages for the fulfillment of the vacancy.

Yes, History of USA was one time bad in terms of unemployement.But in today's era USA has the strongest economy plus a low rate of unemployement.In USA unemployment is 50 year low because of aging, new start ups, better job match,other factors.

Rahul Sunny answered 1 year ago

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