• 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...


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.


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.


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. Demand-deficient Unemployment article commentary.

    Workers have less disposable income which they can spend in different areas of the economy, further weakening it. A solution for this demand-deficient unemployment would be to increase aggregate demand by using expansionary fiscal policy, by altering taxation rates, and monetary policy, by decreasing interest rates.

  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. Economics Coursework on Macroeconomics

    Since Mexico joined the free trade area Mexico's share of the US import market has grown with 7%. On the other hand we need also investigate the Mexican opinions. As I mentioned this current economic slowdown is worldwide, and hits every single country really seriously.

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

    * In order to experience economic growth people establish many factories which emit dangerous gases and cause pollution. That is of course against the objective of social progress that states everyone should share in the benefits of increased prosperity and a clean and safe environment.

  1. The luxembourg Economy (Complete Review)

    This has subsequently limited the ability for government expenditure. Luxembourg- The role of Government within Luxembourg CONTINUED Contrary to many other Developed economies, the Luxembourg government continues to play a substantial role in influencing the outcomes of its product and financial markets.

  2. IB Macroeconomics Commentary

    Payrolls will shrink by several million more jobs during the remainder of this year and next, Dhawan predicted. Georgia, where job growth was especially strong in sectors related to real estate, the burst of the housing bubble has been traumatic.

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

    Not to bailout banks and provide stimulus for careless banks. Ironically, by increasing the money supply and keeping interest rates low during the roaring twenties, the Fed instigated the rapid expansion that preceded the collapse. Their decision was firmly believed to set the tone for banks to be fiscally responsible in the coming years.

  2. Economics Commentary - the article is about the rising tariffs in the trade ...

    The domestic employment increases. Anti-dumping. ________________ ________________ ________________ ________________ Disadvantage- domestic consumers are worse off, domestic income distribution worsens. Foreign producers are worse off, and global misallocation of resources. All of all the trade restriction reduces the positive effect of free trade.

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