Question

3. Look up the most recent unemployment rate in the US. Explain what that number means and whether it might be biased. What types of unemployment are you likely to encounter in a typical economy? Explain with examples.

Answer 1

The most recent unemployment rate of US in April 2019 was 3.6%.

What this means?

This rate fell from 3.8% in March 2019. The rate of 3.6% is the lowest that Unites states have achieved in the past 60 years. To be precise, the unemployment rate has fallen for the adult men and women. The unemployment rate of teenagers has been not impacted by this. This unemployment rate or employment rate are affected by certain factors like education, health and competition. These affect the unemployment rate by affecting number of jobs, number of employed/unemployed and wage prices.

The unemployment rate of United States has been averaged at around 5.5% since the past 60 years and now has fallen to 3.6%. This hoses how the economy is growing at a greater pace.

Types of unemployment that are likely to occur are:

1. Structural unemployment:

Structural unemployment occurs when the market economies fall due to unforeseen imbalances in the economy. This is a kind of unemployment that is likely to occur in future. With the technologies growing so fast and speculations in trade markets increasing, there has been instability in the market. In the past, globalization and liberalization has been the main factors of structural unemployment. These have had bad impacts on economy initially.

2. Classical unemployment:

Classical unemployment occurs when the wages are high in the market. The workers decline to accept the lower wages and end up being unemployed. This is a very common practice because with economies growing so fast, the prices are also growing up. Everybody wants raise in their income levels. Due to this, companies offer higher wages to only limited number of employees and others remain at lower rates, decline to accept them.