Unemployment is an indication of the health of the economy.Unemployment means that there is a portion of theproductive population (labor force) that is not producing andunable to earn income for consumption and/or for investment. Themore unemployed workers there are, the less output the economy willbe able to produce. High unemployment also means that there areless wages available in the hands of people to consume, whichreduces the incentive or need for suppliers to produce at fullcapacity (lower GDP). Moreover, unemployment means that there aremore workers available for work in the labor market (high supply)than jobs (demand). Higher unemployment leads to a reduction in theprice of labor (wages).
Now let's examine the unemployment in the United Sates.
- review the following to learn about the relationship betweenage, race, gender, and unemployment.
- Discuss the differences in unemployment rates by gender, age,educational attainment, and so forth, and provide possibleexplanation for the variations in unemployment over time and thevariation in unemployment by age, gender, educational attainment,and race.
- What interests or surprises you?
