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Macroeconomics Economics Commentary - patterns in America's unemployment statistics

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Introduction

2nd Economics Commentry: Macroeconomics 001386-041 BRANGLIDOR ________________ ________________ Unemployment is defined as ?individuals who are actively seeking for a job but cannot find one.? The rate of unemployment however is the number of employed individuals expressed as a proportion of the labour force. During the recent 2010 recession, the United States (US) faced an incredibly large unemployment rate. Despite the fact that America has mostly recovered from the recession, some sectors of the American economy have not yet left the ?recessionary zone.? In this article, the dilemma of American teenagers and blacks discrimination is discussed. The statistics given from the article demonstrate a decrease in the rate of unemployment within the American economy. This is illustrated in the graph below as we can see the aggregate supply of labour closing the gap between itself (in blue) and the aggregate demand in order to achieve market equilibrium. Statistically, this improvement can be seen by the drop in unemployment figures from 9.4% in December 2009 to 9.4% one year later in December 2010. ...read more.

Middle

completing their high school diploma, meaning that the labour force is fundamentally less productive as these teenagers would have no or relatively no real previous real work experience in comparison to an elder person making them less appealing to employers. A growing number of teenagers choose to work as servers/waiters as a consequence of preference and taste for the job yet more importantly, due to their lack in qualifications to work in offices and large firms. As laws enforcing compulsory education up to a certain age become stricter and a higher number of adolescent individuals choosing to complete their studies exists, these individuals are not counted in the ?pool of unemployment? as they do not wish to have a job at that moment in time. By estimating, blacks who seem to comprise largely of adults seem however to be facing discriminatory reasons resulting in their rather high unemployment rate. ...read more.

Conclusion

qualifications According to Alicia Robb,"Asians are the most educated, so when you have the largest pool of workers, employers are going to pick the most qualified" Robb?s statement explains the situation of the Asian race, having suffered the lowest increase in unemployment yet highest fall un unemployment figures from 8.4% in December 2009 to 7.2% a year later. Recently, a voluminous amount of Asians have flocked to the United States. Not only do they usually obtain higher qualified or greater work experience but Asian labour has been branded to be relatively cheap lowering a firm?s total costs, increasing profits. The later generation of these Asians (20 ? 30 years old) are thus already qualified enough due to the development in America after 1980s and most of them are employed in good companies and are very well paid now. The young generation of Asians, which are contributed to the teenagers are now concentrating on education in America and most of them would go back to their countries after graduating. ...read more.

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