Unemployment Essay Example For Students

Unemployment Essay Unemployment Essay By getting the proper education and applying for a job, our unemployment has a good chance of decreasing a fair amount. Unemployment is a big issue since some people seem to think that they can stay unemployed and on welfare for their whole life and get a fair amount of money from our government. Permanent unemployment is BAD. Its bad for people, its bad for business and industry, its bad for productivity and therefor prosperity (Sartorius, unemployment 4-5). Some citizens believe that even though the current unemployment rate is only about five percent, that still is not that good considering how many people that there are in the United States of America. 3 percent, a tenth of a point increase from the January and February 2001 rate of 4.2%. The number of individuals employed decreased by 86,000. An unemployment rate of 4.3 percent for March 2001 is the highest unemployment rate since July 1999, but only slightly higher than the 3.9 to 4. 1 percent range from October 1999 to the end of 2000. Prior to that, the unemployment rate had been in a steady decline since shortly after the last recession in 1990-1991. The average monthly increase in employment was approximately 155,000 in 2000 and 220,000 in 1999. For almost ten years, unemployment has fallen and the number of employed persons has increased by more than 15 million. In March 2001, the number of jobs decreased by 86,000, the largest monthly decrease since 1991. Job losses were most prominent in the manufacturing sector (81,000 jobs), but there were also losses in the retail trade sector (46,000 jobs). These losses were partially offset by employment increases experienced in the construction and finance sectors. Growth in employment in 2000 was 1.9 million; in 1999, the increase in employment equaled 2.8 million. For most of 2000, unemployment remained between 3.9 and 4. 1 percent of the labor force. In the first three-quarters of 2000, the numbers of individuals in the labor force were increasing at a rate that many observers said could not be sustained without considerable inflationary pressures. The growth in the labor force depends upon the growth of the working age population and increases in the percentage of that group willing to work. Projections are that the size of the group will continue to grow slightly more than one percent a year and that the percentage working will not increase significantly. Under those conditions, the sustainable monthly growth in jobs is about 155,000. The last three months of 2000 have shown growth in the labor force that is less than that sustainable growth rate. Newspapers and magazines are writing about the slowing growth in the U.S. economy. References are pointing to the slowing growth in spending which is resulting in cutbacks in production and in some cases employment. The result of that slowing growth is this months increase in the unemployment rate and decrease in employment. In May of 1999, the Federal Reserve began a policy of slowing the rate of growth in the money supply and creating increases in short-term interest rates. That policy lasted through November of 2000. The goal was to slow the rate of growth in spending in the economy to be more in line with the growth in capacity. That policy has surely had an affect and evidence of that are beginning to appear in a slower growth in real gross domestic products (GDP) in the last quarter of 2000, a rise in unemployment from October through February, and the slowing increase in the number of jobs. Inflation is a sustained increase in the overall level of prices. The most widely reported measurement of inflation is the consumer price index (CPI). The CPI measures the cost of a fixed basket of goods relative to the cost of that same basket of goods in a base year. Child Abuse Essay Without excess spending, the whole line of supply and demand is severely impacted. After the peak and recession phase, the economy enters its lowest point (Sharpiro, 1996). The factories and firms begin to operate at less productive levels. This, in turn, creates high unemployment. This phase is referred to as ;trough;. The economy now enters another phase that impacts the unemployment rate. This phase is known as .