Out of Work and Out of Luck:
The Current Unemployment Rate
The Current Unemployment Rate
A major issue that Americans struggle with today is unemployment. Unemployment is a major issue not only in the United States, but all around the world. The count of unemployment is determined by dividing the number of people unemployed by the labor force. Because the current unemployment rate is a major problem in the United States, we should identify the reasons why the unemployment rate remains high, know the effects of unemployment, and give some suggestions on how to reduce our current unemployment rate. “According to the United States Department of Labor, the current unemployment rate is 8.2 %. The Bureau of Labor Statistics conducts two surveys to determine this rate: the household survey, which interviews 60,000 households, and the establishment survey, which reviews data from 160,000 businesses and agencies” (N.p). Unemployment affects every American in some way.
“Although the Great Recession ended in June 2009 and overall economic activity has exhibited signs of recovery, the labor market’s conditions remain disappointing”(Mocan, H. Naci; and Bali, Turan G). Many Americans find themselves asking, “Why does the unemployment rate remain high?” There are many factors that go into determining the unemployment rate. First, it is important to determine the number of people who are unemployed and the number people who are just simply not working. Some people may be in school full-time, a homemaker, working in the home, disabled, or retired. These people are not included in the unemployment rate because they are not considered part of the labor force. These groups of people would fall into different categories.
Frictional or voluntary unemployment would be considered good unemployment due to an individual wanting to be unemployed. Structural unemployment is a problem because this is due to an individual lacking a skill. There...