Unemployment Essay Research Paper Unemployment The unemployment

Unemployment Essay, Research Paper Unemployment The unemployment report is released periodically and it contained a big surprise for many economists in 1996. Over the past months the reports showed the economy doing quite well. This economy has been doing so well that some economists were worried about reaching full employment rather quickly. Although the jobless would love that to happen, full employment would lead to high inflation and destruction of the economy. The consensus on Wall Street was that the Fed would have to raise rates until word got around about the report. By day’s end, the mainstream were afraid of an economy that will grow so slowly that rates will have to go lower. The current unemployment rate is 5.3%. President Clinton is trying to create new jobs to

get everyone earning real wages. People want to know that he is opening job opportunities but he also does not want full employment. This is a prime example of politics. Tell people what they want to hear but do not let the economy stagnate. I guess that is his hidden agenda. In effect, Clinton plans to strengthen employment and business investments in poverty stricken urban areas. He plans to triple funds to lend to city banks in order to foster economic development in poor neighborhoods. He will also try to triple employment in public housing projects through a $10 million project involving HUD, Rockefeller Foundation, and Chase Manhattan. Many Southern states, seven to be exact, are about to cut their unemployment insurance taxes by hundreds of millions of dollars. The

Southern economy has seen tremendous growth and people are forgetting the bad economic times. The region has also been adding jobs at a constant pace. Unemployment has dropped to record lows in some of these states. This risky act may spell disaster. From a macroeconomic perspective, it is important to note that in the major industrial countries, low unemployment usually creates inflationary pressures. However, throughout the past few years of economic expansion in the United States, prices have held steady despite low unemployment. Unemployment Ever think about what happens to people when they loose their job? Where do they go? What do they do? How do they provide for their family? These are everyday facts about unemployment, one of the largest measuring sticks for an economy.

Unemployment is an important facet of every economy. Although it may seem logical to keep unemployment rates as low as possible, that is not the case. If unemployment rates drop to far down, this may lead to inflation. The reason being that if there is a low unemployment rate then there will be a shortage of skilled workers, thus pushing employers to raise wages and benefits which will in turn raise prices. Over the years, there have been really high highs and really low lows when it comes to unemployment. Currently the unemployment rate is at it’s lowest in twenty five years. The booming economy has helped drop the unemployment rate to below four percent, which is the lowest since 1970. These low rates have been caused by many factors. Some of which include growth in the

industrial output of the United States, a booming stock market, and some natural elements such as recent hurricanes. In order to asses the affects of these different factors on the unemployment rates, economists must have some type of system to estimate the unemployment rate. One major system that is used deals with the number of “help wanted” ads that are published. This process is a compilation of the number of help wanted ads that are measured in fifty-one major newspapers across the United States. These counts are then converted into an unemployment percentage through the use of an index. It is no secret that the goal of every country is to have a productive and stable economy. One which will allow it’s people to function and operate effectively. Currently in the United