MACRO W2A1 For this assignment, you should use the information in the official D
ID: 1112278 • Letter: M
Question
MACRO W2A1
For this assignment, you should use the information in the official Department of Labor website, http://www.bls.gov/home.htm.
Unemployment is one of the major concerns that people have in today’s economy, since losing one’s job can be one of the most devastating events a person can experience. But what do the numbers actually mean? What is the actual state of the economy, in terms of its ability to generate jobs for its citizens?
Questions:
-What is the labor force participation rate? What was the labor force participation rate in 2008? How has it changed since 2008 and what does this change imply for the state of the economy? Does the labor force participation rate effect the unemployment rates reported in the media?
-How is unemployment measured and reported?
-What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect the basic unemployment rate reported in the media?
-What is frictional unemployment? What is structural unemployment? What is cyclical unemployment? What economic policies should be used to deal with these types of unemployment?
-Which type is most prevalent in today’s economy?
-Unemployment insurance is designed to help the unemployed. Do these benefits encourage or discourage a person from looking for work? How long should these benefits last?
-Does the existence of unions help or hurt the overall economy and the employment rate? Why or why not?
Deliverables:
Prepare a 5-6 page Microsoft Word document that addresses the above-noted concerns and meets APA standards.
Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
Include the full report as an attachment to your posting.
Explanation / Answer
The active proportion of the economy's labor force is referred to as labor force participtaion rate. This includes those who are in employment as well as those who are actively looking for employment.
The labor force participation rate was 66% in 2008. The current labor force participation rate in 2017 is averaging to 63%. This implies rising unemployment in the economy at first.However, it could also mean lesser number of individuals looking for work actively or simply just dropping out of the labor force.
The unemployment rate is arrived at by dividing the total unemployed by the total labor force. Thus, there is a close relationship between this rate and the labor force participation rate. As individuals drop out of the labor force it will not affect the total number of unemployed.
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