Changes

Jump to: navigation, search

Unemployment

2,991 bytes added, 00:50, 7 May 2017
/* Causes */ dewikify
[[Image:Unemployment office.jpg|right|thumb200px]]'''Unemployment''' is the state of being unemployed. The U.S. government classifies persons as "[[unemployed]]" if they do not have a job, but have actively looked for work in the prior 4 weeks, and are currently available for work. (The [[labor force]] is made up of the employed and the unemployed. The remainder—those who have no job and are not looking for one—are counted as "not in the labor force.") [http://www.bls.gov/cps/faq.htm#Ques5]"Involuntary unemployment" is when people are unable to find jobs at the prevailing wages for their skills and experience. Economists refer to this as "involuntary Voluntary unemployment."is a normal process when people join the labor force (after leaving school, for example) or move to a new area.
Contrary to a campaign ad for Obama's reelection, "the Massachusetts unemployment rate fell steadily even as the working-age population rose when Romney was governor." (Source: a column in the liberal ''Boston Globe'' [[Imagehttp:U//bostonglobe.com/opinion/2012/07/10/mitt-2009romney-economic-record-massachusetts-outpaces-barack-obama-2record/UXVVRMrD4Wf4dWdDb97mNI/story.jpghtml])----{{clear}}[[File:Recovery Summer Unemployment.JPG|450px|right|thumb|275pxUnited States Unemployment after President Obama's [[American Recovery and Reinvestment Act of 2009|lefteconomic stimulus]] was passed. ]]After reaching a low of 4.1% in October, 2006, the U.S. unemployment rate has been trending moving upward, reaching 910.40% in May 2009January 2010. It will continue rising for several more months. Unemployment normally peaks a few months ''after'' By May 2017, under the economy reached bottom and starts going up again[[Trump Administration]], unemployment was back down to 4.4%, but wages remain stagnant.
Some people think that to get figures on Weekly estimates of unemployment the Government uses use the number of persons filing new claims for unemployment insurance (UI) benefits under State or Federal Government programs. But some people are still jobless when their benefits run out Much more accurate data is based on large scale interview surveys, and many more are not eligible at all or delay or never apply for benefitsis reported on the first Friday of the following month. So Since 1940 the Government conducts a monthly sample survey called the Current Population Survey (CPS) to measure the extent of unemployment in the country. The CPS has been conducted in the United States every month since 1940 when it began as a Work Projects Administration projectused. <ref>See [http://www.bls.gov/cps/cps_htgm.htmBureau of Labor Statistics]</ref>==Causes==Three types of unemployment can be distinguished by their causes. '''Frictional''' unemployment is the normal churning of the job market; people enter the labor force from school or home, and spend time looking for the best job. Most frictional unemployment is voluntary and is desirable to keep the economy working. '''Seasonal''' unemployment refers to jobs that operate at certain seasons, such as construction and tourism industries. Because teachers are paid during summer vacation, they are not counted as unemployed in the summertime. The '''"normal unemployment rate'''" (frictional plus seasonal) is about 3% to 4%. '''Unemployment insurance''' is designed to help people smooth over their financial needs during frictional and seasonal unemployment.
Three types of unemployment can be distinguished by their causes. '''FrictionalStructural''' unemployment is the normal churning much more serious. It means a mis-match of the job market; people enter the labor force from school or home, jobs and spend time looking for the best jobworkers. '''Seasonal''' unemployment refers to For example, there may be jobs that operate at certain seasons, especially in the construction cities and tourism industriesunemployment in mining or logging areas, but people are reluctant to move because of family ties. Teachers There may be jobs available in the summertime some fields but people who are not counted as unemployedlack the necessary skills. The '''"normal unemployment rate'''" (frictional plus seasonal) This is about 3% to 4%. '''[[Unemployment insurance]]''' is designed to help people face frictional and seasonal unemployment. It permits them to keep their skills rather than take a low-skilled structural problem solved by migration, jobtraining and education.
Finally—and most serious—is '''Structuralcyclic unemployment''' unemployment means a mis-match (as in [[Recession of jobs 2008|2008-2009]] and workers. For examplethe [[Great Depression]]), there may be jobs in when the cities whole economy is sagging and unemployment in mining or logging areas, but people are reluctant to move because businesses lay off tens of family tiesthousands of workers every day. There may be Some new jobs available in some fields are created every month but people who they are unemployed lack overwhelmed by the necessary skillsjobs that are lost. This is a structural problem solved by migration In February 2009, job training and educationthe U. Some structural unemployment S. economy lost 651,000 jobs net (that is caused , jobs that disappeared outnumbered jobs that were created by policies such as the 651,000). Through April 30, 2009, about 5.7 million jobs were lost in 2008-9.[[minimum wageFile:Un-0409.jpg|thumb|250px|update for April 2009]][[Image:Job-loss-09.jpg|thumb|250px|US job losses January 1-March 31, 2009]]
Finally--and most serious--is '''cyclic unemployment''' (as in [[Recession In times of 2008|2008-2009]] and the [[Great Depression]]), when the whole economy is sagging and businesses lay off tens of thousands of workers every day. A few new jobs recession people are created every month but they are overwhelmed by the jobs that are lostunemployed for much longer periods. In February July 2009, the U.S. economy lost 651,000 jobs net 5 million people (that is, jobs that disappeared outnumbered jobs that were created by 641,000one out of three unemployed)had been out of work for six months or longer. Through April 30<ref>Bureau of Labor Statistics, 2009, about 5.7 million jobs were lost in 2008"The Employment Situation -9.[[File:Un-0409.jpg|thumb|250px|update for April July 2009]] " [[Imagehttp:Job-loss-09//www.bls.gov/news.jpg|thumb|250px|US job losses January 1-March 31, 2009release/empsit.nr0.htm online]]At election time, unemployment is often portrayed as a great evil, but [[Milton Friedman]] said,</ref>
:All ==Natural rate==Conservative [[economist]] [[Milton Friedman]] in 1968 introduced the concept of the progress that the US has made over the last couple "natural rate of centuries has come from unemployment. It has come from figuring out how to produce more goods with fewer workers, thereby releasing labor to be more productive in other areas. It has never come about through permanent unemployment, but temporary unemployment, in " which is the process of shifting people from one area to anotherrate generated by the economy which does not cause inflation or deflation. [http://www.rightwingnews.com/interviews/friedman.php]
Friedman notes::All of the progress that the US has made over the last couple of centuries has come from unemployment. It has come from figuring out how to produce more goods with fewer workers, thereby releasing labor to be more productive in other areas. It has never come about through permanent unemployment, but temporary unemployment, in the process of shifting people from one area to another.<ref>See [http://www.rightwingnews.com/interviews/friedman.php interview]</ref> ==see See also==[[File:Employed.jpg|thumb|300px]]*[[Cyclical unemployment]]
* [[Great Depression]]
* [[Recession of 2008]]
* [[Jobless recovery]]
* [[Phillips curve]], for Keynesian model
* [[Barack Obama and United States Unemployment]]
* [[:Category:Survivalism|Economic preparedness]]
 
==Further reading==
* Blanchard, Olivier J. "European Unemployment: The Evolution of Facts and Ideas," ''Economic Policy'', Vol. 21, No. 45, pp.&nbsp;5–59, January 2006
* Gallaway, Lowell, Richard Vedder, Martin Bronfenbrenner. ''Out of Work: Unemployment and Government in Twentieth-Century America'' 336 pp [http://www.questia.com/library/book/out-of-work-unemployment-and-government-in-twentieth-century-america-by-lowell-gallaway-richard-vedder-martin-bronfenbrenner.jsp online edition], by conservative economists
* Garraty John A. ''Unemployment in History: Economic Thought and Public Policy'' (1978)
* Jensen, Richard J. "The Causes and Cures of Unemployment in the Great Depression," ''Journal of Interdisciplinary History'' 19 (1989) 553-83. [http://www.jstor.org/pss/203954 online at JSTOR]
* Layard, Richard, etr al. ''Unemployment: macroeconomic performance and the labour market‎'' (2005) 623 pages [http://books.google.com/books?id=ge2kxorhALEC&dq=intitle:unemployment&lr=&as_drrb_is=b&as_minm_is=0&as_miny_is=1990&as_maxm_is=0&as_maxy_is=2009&num=30&as_brr=0 excerpt and text search]
* Marshalle, Mary I. ''Economics of unemployment‎'' (2006) 230 pages [http://books.google.com/books?id=6UcdQsU97f4C&dq=intitle:unemployment&lr=&as_drrb_is=b&as_minm_is=0&as_miny_is=2004&as_maxm_is=0&as_maxy_is=2009&num=30&as_brr=0 excerpt and text search]
 
==References==
<references/>
 
{{Economic preparedness topics}}
[[Category:Economic Preparedness]]
[[Category:Threats]]
[[Category:Survivalism]]
[[Category:Economics]]
[[Category:Obama AdministrationGreat Depression]][[Category:Employment]]
Siteadmin, bureaucrat, check user, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrator
87,963
edits