...allow them to learn a trade, go to a community college or obtain a higher-level degree. Lastly, according to the Keynesian perspective, it is strongly suggested that the President lower taxes for the middle class. This should increase the aggregate demand by freeing up cash for families to use. Expectations The U.S. Economy is made up of the following categories of Unemployment, Consumer Income, and Interest Rates. Based on these factors consumers have their own expectations of how the economy should be and the government based on the data that they have privy to have their own expectations of the U.S. economy. In order to get the expert opinions of the U.S. economy, we must look at each category’s projection. According the Bureau of Labor 2012-2022 employment projection report, the total employment rate will increase 10.8 percent during this period. In this report it indicates that the labor force will be a slow growth thus projecting the GDP to increase by 2.6 percent annually. This percentage is “slower than the 3 percent or higher rate often posted from the mid-1990s through mid-2000s”. (Bureau of Labor The first recommendation is based on the Keynesian perspective and addresses government spending and taxes. It is the advisement of the team that the President consider increasing spending for educational programs to unemployed workers to obtain higher paying positions after school. This will in turn take individuals that are not gainfully employed and allow them to learn...
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...GEORGE L. PERRY* Brookings Institution Labor Structure, Force Potential and Output, Productivity potential gross national product for over a decade now. Potential GNP measures the output the economy would produce if it were operating at some fixed, fairly low level of unemployment, usually defined by an aggregate unemployment rate of about 4 percent. The difference between potential and actual GNP at any point in time is known as the GNP gap. In 1962, Arthur Okun published an analysis that has been the benchmark for official measures of potential GNP ever since, and in the process enunciated what came to be known as Okun's law, which relates the unemployment rate to the percentage GNP gap.' Potential GNP and Okun's law became two of the handiest tools of analysis and presentation for economic stabilization problems. Particularly during the first half of the 1960s, when GNP was running below potential and policy was devoted to closing the gap, no sophisticated analysis of the economy failed to identify the loss in real output that was associated with an economy falling short of full employment. The careful estimation of the full employment surplus in the federal budget has been an important by-product of the estimation of potential ECONOMISTS HAVE ATTEMPTED TO ESTIMATE * I want to thank Nancy Hwang and HerbertF. Lowrey,Jr., who did all of the computationsin this paper. 1. Arthur M. Okun, "Potential GNP: Its Measurement and Significance...
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...Recent College Graduates Recent college graduates in the U.S. labor force: data from the Current Population Survey Data collected each October in the School Enrollment Supplement to the Current Population Survey provide an annual snapshot of the demographic characteristics, labor force activity, and school enrollment status of each year’s cohort of recent college graduates Thomas Luke Spreen Thomas Luke Spreen is a doctoral student at the School of Public and Environmental Affairs, Indiana University, Bloomington, IN, and formerly an economist in the Office of Employment and Unemployment Statistics, Division of Labor Force Statistics, Bureau of Labor Statistics. Email: cpsinfo@ bls.gov. very year, thousands of recent graduates of colleges and universities across the United States enter the labor force with newly minted degrees and high hopes about their employment prospects.1 In October 2011, 74.5 percent of the 1.3 million 2011 recent college graduates were employed, according to data from the Current Population Survey (CPS). The unemployment rate for the 2011 cohort of recent college graduates was 12.6 percent. CPS data also show variation in the labor force status of bachelor’s and advanced degree recipients. This article is the first from the Bureau of Labor Statistics (BLS) to publish labor force data specifically for recent college graduates. The estimates presented in this article were generated from data collected in the October School Enrollment Supplement...
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...in a recession, total spending falls, businesses produce a lower volume of goods, and as a result, unemployment occurs. For example, during the great depression of the 1930’s in America, the unemployment rate rose to a record high twenty-four percent*. Two other notable times of recession yielding unemployment include the oil crisis of the 1970’s and 1980’s, and the great recession of 2008. During these times, the labor force, or people who are able and willing to work, has a higher amount of people without jobs than usual. Unemployment, of which there are many types, is a problem within the business cycle that can cause negative effects on a countries’ economy and businesses alike. Measurement Unemployment is measured each month by the U.S. Bureau of Labor Statistics (BLS). The process of which they conduct this survey consists of questioning a random 60,000 households and ascertaining as to who is employed and who is not**. With a series of questions, the BLS finds which members of the households are working, who is looking for work, who is not looking for work, etc. After receiving this information, the BLS uses the data and forms an unemployment rate for the entire nation. By the BLS’ definition, there are three groups of the U.S. population. The first consists of people under the age of sixteen and those who are institutionalized; these people are not considered members of the labor force. Another group not considered to be in the labor force is composed of adults...
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...has been asked to research unemployment concerns in Chile and to write a report of his/her findings. The employee has been asked to research data sets for unemployment and state the relationships between unemployment and Chile’s economy. The employee must answer what trends he/she finds in the data sets and to support those trends with statistical evidence. In today’s economic turmoil one only needs to look at Chile to gain a better view. According to www.thisischile.cl the country is ranked second according to the Economic Climate Index (ICE). Chile is ranked second after Brazil in Latin America. Chile has reached a 7.8 ICE score a vast improvement over the 1990 score of 2.9. According to the New York Times (2011) “Chile is home to the world's largest copper producer.” Chile also produces wines and fruit with agriculture accounting for 15 percent of Chile’s total exports. As stated by Krugman & Wells (2009) “Unemployment is the number people who are actively looking for work but aren’t currently employed.” Krugman & Wells (2009) also states that “The unemployment rate is the percentage of the total number of people in the labor force who are currently not unemployed.” A country’s economy has a direct effect on the unemployment rate. If the economy is good unemployment rates are usually low, if the economy is bad the unemployment rate is usually high. Chile is currently enjoying a stable economic climate with unemployment numbers reaching an all-time...
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... LUYAO YANG SUBJECT: U.S UNEMPLOYMENT RATE DATE: APRIL 10, 2016 Unemployment is a familiar and sensitive concept for people in the labor force. In particular, during the recession, a lot of people will loss the job and unemployment can have a great influence to the social stability. This memo will start with the definition and measurement of unemployment. Then it will show the impact of unemployment to the nation and the relationship between unemployment and GDP. After that, it will continue to discuss the how the unemployment rate will affect the Federal Reserve decision regarding to rate. In the end, historical data from different categories will be displayed to further discuss unemployment. Definition and Measurement Unemployment occurs when people are actively seeking for jobs but cannot find a job. The unemployment rate is a quantitative...
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...Macroeconomic Data Gross Domestic Product (GDP) Consumer Price Index (CPI) Unemployment rate Gross Domestic Product: Expenditure and Income Two definitions: Total expenditure in goods and services produced in a country Total income earned by productive factors in a country Expenditure equals income, since each dollar/euro spent by a consumer, is also the income of a producer Circular flow in the Economy Income Labor Households Firms Goods/Services Expenditure Value Added Value added of a firm is - The value of its good/service Minus - The value of the intermediate goods used to produce that good/service Exercise: A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP? Solution 1. Farmer’s value added: 1,00 € 2. Miller’s VA: 2,00 € 3. Baker’s VA: 3,00 €. 4. GDP = 1 + 2 + 3 = 6 (sum of incomes) 5. GDP = Price of Bread! Final Goods, Value Added and GDP GDP = the total value of final goods and services produced. GDP = the total value added of all firms in the economy. The value of intermediate goods is already included as part of the market price of the final goods in which they are used. To add the intermediate goods to the final goods would be double counting. The Components of Expenditure Consumption...
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...Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Many different variations of the unemployment rate exist with different definitions concerning who is an "unemployed person" and who is in the "labor force." For example, the U.S. Bureau of Labor Statistics' commonly cites the "U-3" unemployment rate as the official unemployment rate but this definition of unemployment does not include unemployed workers who have become discouraged by a tough labor market and are no longer looking for work. The various schools of economic thought differ on their explanation of the cause of unemployment. Keynesian economics proposes that there is a "natural rate" of unemployment because the skills of laborers and the positions available are slightly out of sync even under the best economic conditions. Neoclassical economics postulates that the labor market is efficient if left alone, but that various interventions, such a minimum wage laws and unionization, put supply and demand out of balance. The nature of unemployment differs according to the level of economic development in a country. India is an underdeveloped economy. The following types of unemployment exist in India: 1. Rural Unemployment: India is...
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...Chapters 8 & 9 Due – Wednesday, February 17th ***SHOW WORKING*** Self-Check Questions Chapter 8 1. Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed). How many people are “not in the labor force?” What are the proportions of employed, unemployed and not in the labor force in the population? Hint: Proportions are percentages. ANSWER: The population is divided into those in the labor force and those not in the labor force. The number of adults not in the labor force is 237.8 – 153.9 = 83.9 million. Since the labor force is divided into employed persons and unemployed persons, the number of unemployed persons is 153.9 – 139.1 = 14.8 million. The adult population has the following proportions: 139.1/237.8 = 58.5% employed person 14.8/237.8 = 6.2% unemployed persons 83.9/237.8 = 35.3% persons out of the labor force 6. Is the increase in labor force participation rates among women better thought of as causing an increase in cyclical unemployment or an increase in the natural rate of unemployment? Why? ANSWER: The increase in labor supply was a social demographic trend, it was not caused by the economy falling into a recession. So the influx of women into the work force increased the natural rate of unemployment. Chapter 9 1. Table 9.4 shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with...
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...An Assignment on Money Market and Labour Market in context of Bangladesh Course Instructor: Abdul Jalil Chowdhury SUBMITTED BY: Zinat Mahal Roll No.: 1328 Departmental of Training for BCS (Economic) cadre Officers NAPD, Ministry of Planning, Nilkhet, Dhaka-1205 Introduction Bangladesh is a developing country in where money market and labour market are two of the most important issues of economics that determine long run development of a country. The GDP and infrastructural development of a country depend largely on the successful and efficient money market and labour market. Financial sector is considered to be playing a crucial role in facilitating efficient allocation of resources and improving productivity of investment. Although the direct effect of financial institutions on the real economy is less clear, the indirect impact of financial market is essentially critical (Herring et al., 1991). Mobilization of savings, managing risks and facilitating exchange of goods and services are the functions of financial sector that connect households, firms and governments for their own purposes. An efficient financial system can be of great use for the poor through boosting the growth of the economy and reducing the financial risks by creating an enabling environment to ensure easy access to financial services for all. Money Market A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded...
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...Unemployment From Wikipedia, the free encyclopedia Jump to: navigation, search For payments paid to unemployed people, see unemployment benefits. Unemployed men outside a soup kitchen in Depression-era Chicago, 1931. Unemployment (or joblessness) occurs when people are without work and actively seeking work.[1] The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession, an economy usually experiences a relatively high unemployment rate.[2] According to International Labour Organization report, more than 197 million people globally are out of work or 6% of the world's workforce were without a job in 2012.[3] There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment. Classical economics, New classical economics, and the Austrian School of economics argue that market mechanisms are reliable means of resolving unemployment. These theories argue against interventions imposed on the labor market from the outside, such as unionization, bureaucratic work rules, minimum wage laws, taxes, and other regulations that they claim discourage the hiring of workers. Keynesian economics emphasizes the cyclical nature of unemployment and recommends government interventions in the economy that it claims will reduce unemployment during recessions. This theory focuses...
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...TERM PAPER UNEMPLOYMENT AND ITS SITUATION IN ASIA Submitted to: Sir Abdul Farooq Submitted by: Muzammil Shahid (10) Ifzal Ahmed (09) Hajra Fazal(29) Adeel Abid(08) (F005-BBA) Date: 11, December 2006 Contents 1. Introduction 3 1.1 Statement of problem 3 1.2 Objectives of Study 6 1.3 Methodology and source 7 1.4 Organization 7 2. Review of literature 8 3. Analysis of Data 23 3.1 Global Causes of Unemployment 23 ...
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...Sterling Martin Principles of Investments The Employment Situation The Employment Situation is the most widely anticipated piece of economic information monitored by financial markets. Released during the first week of the month, the BLS provides investors with an in depth analysis on the previous month’s labor market by analyzing various economic indicators. This report is prepared using statistics from two major surveys, the Current Population Survey (CPS; Household Survey) and the Current Employment Statistics Survey (CES; Establishment Survey) The household survey does a very good job of providing useful information on the labor force, employment, and unemployment rates. Using a sample that best reflects the entire civilian non-institutional population, the household survey is based on the responses to a series of questions on work and job search activities. In doing so, the BLS is able to classify individuals as either employed, unemployed, or not in the labor force. Establishment surveys consists of surveys of business that are critical to our comprehension of economic trends. By using data found in the payroll records of nonagricultural business establishments, the BLS provides investors detailed industry data on employment, hours, and earnings of workers on non-farm payrolls through its use of the Establishment Survey. Due to its timeliness, accuracy, and importance as an indicator of economic performance, most financial professionals would likely agree...
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...INTRODUCTION The objective of this mini project is the study the structure and performance of national economies and the policies that governments use to try to affect economic performance. Important topics in this mini project include the determinants of long-run economic growth, unemployment, inflation, and macroeconomic policy. In addition, this mini project are also able us to know the measurement of the standard living of a country in term of productivity, efficiency and effectiveness. Besides that, we are also able to determine what is measured by Gross Domestic Product, Inflation and etc as well as know how the government policy could contribute to improved productivity of the country. The picture below shows the brief idea how does Indonesia looks like. Picture 1: Tourism in Indonesia’s island Picture 2: Place to travel in Indonesia Picture 3: City in Indonesia Picture 4: Map of Indonesia Choose one country of the world The chosen country was Indonesia. The reason of Indonesia been chosen because Indonesia is given public an image that Indonesia is a lag behind country than other since there was a tragic event happened in Indonesia in the middle of 1997 all along. This causing Indonesian suffered a great deal and many of them have experienced a very large decline in their living standard. It was irony in Indonesia’s case seen a country...
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...Estonian inventor he invited to tea in the summer of 2011 who told him he was moving to the U.S. in two weeks to make his fortune. His name is Hardi Meybaum, and he co-founded a computer-aided-design company called GrabCAD. Last fall the now-Boston-based company was sold for $100 million. Said Ilves: “That never would have happened in Europe.” 2) America’s economy booming again The U.S. economy is booming again—which is one reason President Obama devoted much of his State of the Union address to extolling it. “Since 2010,” Obama said, “America has put more people back to work than Europe, Japan, and all advanced economies combined.”The U.S. economy has generated jobs at a pace of a quarter million per month over the past year. The unemployment rate—5.6 percent, the lowest since 2008—is low enough that the Federal Reserve has stopped buying bonds and is making noises about lifting short-term rates this year, 3) How America was able to utilize government intervention to get out of a recession. President Bush’s Treasury secretary, Henry Paulson, engineered a takeover of housing finance giants Fannie Mae and Freddie Mac, which kept some credit flowing to home buyers. President Obama and his Treasury secretary, Timothy Geithner, took even more dramatic actions as the crisis deepened in 2009—getting Congress to pass a $787 billion stimulus package and saving General Motors and Chrysler from being dismembered in bankruptcy court. 4) America’s economy affect the world’s...
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