Unemployment rate in the United States Economy
Unemployment is one of the principal macroeconomic problems facing the United States economy. This implies that the economy is not operating under full employment. United States has been experiencing a high level of unemployment in the past. However, in the recent past the United States unemployment has fallen down to 7.7 percent as per statistics this year in the month of November. This is the lowest unemployment rate United States labor department has recorded in the past four years. According to a report by the labor department, about 146000 jobs were added in the economy. This resulted to the unemployment rate falling from 7.8 to 7.7 percent. The fall is largely attributed to the fact that most households stopped looking for employment opportunities in the economy (Zhang, 1). Unemployment in an economy is an indicator that the economy is not operating under full employment. Unemployment is a situation where individuals who are eligible and willing to work cannot get work in the economy. There are several types of unemployment in the US economy. They include voluntary unemployment where individuals voluntarily decide not to take any employment opportunity in the economy. Seasonal unemployment also arise where household are often in and out of employment because of the seasonal changes in the work. Cyclical unemployment also arises because of the changes in business cycles. During booms, most of the labor force is in employment, and during recession, there are high levels of unemployment in the economy. Frictional unemployment arises where the household take time when they leave one job and before getting another job. This transition period from one job to the other is referred as the frictional unemployment. Structural unemployment is also evident in the economy where the skills of t he households fails to match the needs of the industries in the economy (Zhang, 1)....