• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Macroeconomics Economics Commentary - patterns in America's unemployment statistics

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. IB Macroeconomics Commentary

    The mix has been toxic. Georgia slipped into recession in late 2007 and started shedding jobs before the national downturn began. And by the time a tepid job growth starts again - in 2011 - the state will have lost a stunning 360,000 jobs, Dhawan said.

  2. IB SL Economics Commentary: Macroeconomics

    The current unemployment rate is 8.2%, above the generally accepted natural rate of unemployment. It has however fallen significantly, with a gain of 159,000 new jobs since June 2009. This may be attributed the decrease in structural unemployment, a seen in Fig 1 through a shift from AD (l)

  1. Growth and Development Problem Set - IB Economics exam questions and answers.

    Explain why economic growth is likely to generate external costs, which are a threat to sustainable development. Economic growth refers to increases in the quantity of output (goods or services) produced over a period of time (usually a year)

  2. Demand-deficient Unemployment article commentary.

    Number of workers In a period of recession, consumers are less willing to spend their income, which leads to a fall in aggregate demand, as can be seen in Figure 1. The aggregate demand curve shifts to the left from AD to AD along the long-run aggregate supply curve, LRAS, causing a reduction in the real output of an economy.

  1. Economics Coursework on Macroeconomics

    The other American concern was that the tariff is against the NAFTA agreement. The NAFTA is a free trade area between US, Canada and Mexico. All trade in the NAFTA region suppose to be tariff-free.

  2. feasibily studies

    day" or suddenly you just want to go to a spa center, would you try it? : 8 8) Are you willing to pay more for a different and better experience in our spa center? : 9) What situations/statuses are the reasons why you never go to spa centers?

  1. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    The proletariat class is seen to grow powerful not in wealth, but in numbers which is believed to be all that is necessary to start a revolution. Marx believed the struggle of the growing proletariat class would eventually lead them to overthrow the capitalist system successfully.

  2. Macroeconomics Article Commentary. The worst problems surrounding youth unemployment in Scotland are not ...

    At Qe, the labor market is at equilibrium as the demand for labor matches the supply. Though, in this case, the supply of labor has decreased causing the AS curve to shift leftwards. This shows that the market is not running at full efficiency as production is being hindered.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work