Preview

Unemployment Rate: The Great Recession From 2007 To 2009

Good Essays
Open Document
Open Document
415 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Unemployment Rate: The Great Recession From 2007 To 2009
Since 2009, our unemployment rate has been steadily dropping. The Great Recession from 2007 to 2009 had a significant impact on the economy spiking the unemployment rate of the United States at a shocking ten percent. Thankfully, under the governing of President Obama we have managed to reduce that rate to under five percent. Nelson D. Schwartz at the New York Times suggested that the decrease has necessitated employers to increase their wages to entice new employees and retain current ones, but is that the wisest option for business owners? Do economists anticipate unemployment rates to continue to drop, causing this to be a necessity?
In January of this year, 151,000 jobs in a variety of fields were added to the job market. While this
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    ECO 372 Week 3 Learning Team
    • 1516 Words
    • 6 Pages

    ECO 372 Week 3 Learning Team

    The unemployment rate in the United States has dropped significantly ever since the economy crashed in 2008 when unemployment rapidly climbed. Unemployment is still higher than it should be but at least the rate is decreasing. On a national level the unemployment rate has dropped from 8.3% in January 2012 to 7.9% in January 2013 (United States Department of Labor, 2013). Over the past year unemployment has changed very little with an exception of a drastic decline in unemployment during the third quarter of 2012 (United States Department of Labor, 2013). According to the United States Department of Labor, more than 300 thousand persons was removed from the labor force willing and able to work; however, did not actively search for a job within the last four weeks. This contributed to the fall in unemployment rates. Employment has…

    • 1516 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    ECO 372 Week 3 Learning Team Aggregate Demand And Supply Models 1
    • 1429 Words
    • 4 Pages

    ECO 372 Week 3 Learning Team Aggregate Demand And Supply Models 1

    It has been going on five years since unemployment has been such a factor in the United States. The unemployment rate is defined as the percentage of people in the economy willing and able to work but are not working. This statistic is a little deceiving, as it does not take into account the people who have given up looking for work. Given that caveat, experts believe that the number of people out of work is significantly higher. The Bureau of Labor Statistics (BLS) reports the unemployment rate on the first Friday of each month. It is useful to compare this month 's unemployment rate to that of the same month last year. This rules out the effects of seasonality (Amadeo, 2011). Unemployment is known as a lagging indicator. The effect of economic events, such as a recession, and so occur after the said economic event has already started. That means the unemployment rate will continue to rise even after the economy has started to recover, as employers are reluctant to lay people off when the economy turns bad. In turn, companies are even more reluctant to hire new workers until they are sure the economy is well into the expansion phase of the business cycle. For that reason, the unemployment rate is a powerful confirmation of what the other indicators are already showing. The current unemployment rate as of the end of January was 8.3% and…

    • 1429 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Week 3, Learning Team - Aggregate Demand and Supply Models - Economic Critique Essay Example
    • 1636 Words
    • 7 Pages

    Week 3, Learning Team - Aggregate Demand and Supply Models - Economic Critique Essay Example

    The unemployment rate steadily has declined over the last three years; there was a difference of 1.6% from July 2011 to July 2013. In July 2011 the unemployment rate was at 9% while in July 2013 it was reported at 7.4% so there was a decline of 1.6% (Bureau of Labor Statistics: The Employment Situation, 2013). The unemployment rate lowering over the last three years has been a positive thing for the United States economy because it means more jobs were created in 2013 and thus more people are working. The positive upturn in the unemployment rate would means that the household income has increased and there is more spending money power available. Even though there is some positive feedback in the unemployment rate numbers there are still other issues that affect the economy and still need to be dealt with like the government budget cut, which could produce more businesses taxes. The economy is on a slow but steady up-swing do to job creations, which has caused the unemployment rates to lower for the last three years. Some job markets have created new jobs like the retail and service market but other have not improved at all like the manufacturing and health care markets. The important thing is that there are more…

    • 1636 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Econ312 Week 6 Paper Essay Example
    • 621 Words
    • 3 Pages

    Econ312 Week 6 Paper Essay Example

    From what is supposedly being shown in papers and on the news the U.S. economy is currently concerned about unemployment, caused by the recession. This “current macroeconomic situation” is pardoning my language freaking a lot of individuals out, because some have no idea of how it is going to get better. The news/media is not painting us such a pretty picture of it, by calling it “this decade’s depression”. The unemployment rate is at 8.2% as of July 2012, whereas the average in 1948 was at 5.6%. While the inflationary rate is approximately 2.3%, seemingly that is lower than the past average rate of 3.38%.…

    • 621 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    The Effects of Global Recession in the Unite States
    • 448 Words
    • 2 Pages

    The Effects of Global Recession in the Unite States

    The global recession has led to layoffs. Layoffs will be effecting the foreigners working in different…

    • 448 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nafta Pros And Cons
    • 1106 Words
    • 5 Pages

    Nafta Pros And Cons

    • Jobs. U.S. employment rose from 112.2 million in December 1993 to 137.2 million in December…

    • 1106 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Minimum Wage Macro-Economic Changes Essay
    • 1391 Words
    • 6 Pages

    Minimum Wage Macro-Economic Changes Essay

    From April employers will be forced to pay their employees a minimum of £7.20 per hour, but will the change in minimum wage affect unemployment rates? I believe that the answer is yes. It is said that if the minimum wage is increased by April 2016 it will only increase unemployment rates. If the minimum wage is increased to £7.20 how long until it effects running costs of the employer? I previously worked at the cinema Odeon and was earning £5.74 an hour. If my employer hires ten employees to work for 20 hours of this week they are going to be paying £1148. Now if the minimum wage is increased to £7.20 instead of paying £1148 to ten employees for 20 hours they will be paying £1440 which is a £292 increase in costs. This will mean that the employer will have to pay more for the same quality of work they were receiving. This could impact the organisation as a whole and cause for many price increases. This could also costs many jobs in many organisation to make costs more manageable throughout the business as a whole. I believe the change in minimum wage will most certainly affect unemployment rates. I think that less people will be able to get jobs because employers will not want to employ to save the organisation money. I believe that unemployment rates will be steady when minimum wage is first increased but slowly increase over time in correlation with my theory of employers not wanted to employ as many workers to save…

    • 1391 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Unemployment During The Great Depression
    • 507 Words
    • 3 Pages

    Unemployment During The Great Depression

    The Great Depression was one of the most severe economic situation that the world had ever seen. It all started during the late 1929 and lasted until 1939. There were many problems Great Depression but the major problems like Stock Market Crashes, Bank Failures but the most important was Unempolyment. The Great Depression began in the United States but it quickly turned into a world-wide economic problem. Everyone during this time was highly affected from the problems and situations.…

    • 507 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Why Is Donald Trump An Ineffective President
    • 1924 Words
    • 8 Pages

    Why Is Donald Trump An Ineffective President

    When Trump took office in February, 1.7 million jobs were added. (Chu). While being true, it does not paint the full picture. However that's not true because millions of jobs have been added each year since 2010. The trend peaked in 2014 with almost 3 million new jobs and declined to 2 million in 2016.…

    • 1924 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    The Great Recession: The Cost Of Unemployment
    • 118 Words
    • 1 Page

    The Great Recession: The Cost Of Unemployment

    The costs of unemployment to the individual are not hard to imagine. When a person loses his or her job, there is often an immediate impact to that person's standard of living. Prior to the Great Recession, the average savings rate in the U.S. had been drifting down towards zero (and sometimes below), and there are anecdotal reports that the average person is only a few weeks away from serious financial trouble without a paying job. Even for those eligible for unemployment benefits and other forms of government assistance (like food assistance), it is often the case that these benefits replace 50% or less of their regular income. That means these people are consuming far less than usual.…

    • 118 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Anise of government assistance programs
    • 884 Words
    • 5 Pages

    Anise of government assistance programs

    In order to get benefits From welfare programs, those looking to receive them must find if they qualify for them. Information for these programs can be discovered online, or by speaking to a person well educated on the agency. The accessibility for programs vary for every state. Every state serves different programs according to statistics and the needs of its people. In North Carolina there are 12 Government benefiting programs, but in Wyoming they provide 14 ("Guide to Assistance").…

    • 884 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Wall Street Journal
    • 1698 Words
    • 7 Pages

    Wall Street Journal

    Neil Shah wrote this article which briefly covers the topics of unemployment and the natural unemployment rate. The way our economy has been on a downward slope has led to the need to write about the natural unemployment rate. There are more and more people losing their jobs. Not only do they lose their jobs, but the longer that they are out of the job market, the more uninterested future employees are at hiring them, thus putting them out for a long period of time. The article focuses on how the natural rate was 5%, but has increased more recently. It tries to determine what the underlying cause of the increase is. The natural rate is healthy because it leaves room for the ebb and flow of the economy. However, increasing this natural rate only means that there are more people than should be out of work. Neil Shah believes that the reason for the higher rate of unemployment is due to a weak demand for workers. The main issue with the higher unemployment rate is that the higher it gets, the Federal Reserves would like to join in an effort to help the economy, but by doing so it leaves a risk for a higher inflation.…

    • 1698 Words
    • 7 Pages
    Good Essays
    Read More
  • Better Essays

    Recession In The United States
    • 995 Words
    • 4 Pages

    Recession In The United States

    Recessions are generally believed to be caused by a widespread drop in spending. Beginning in the United States in December 2007 the industrialized world has been undergoing a recession, a pronounced deceleration of economic activity. The financial crisis has been linked to reckless and unsustainable lending practices resulting from the deregulation and securitization of real estate mortgages in the United States. Whatever the cause, there is one question that has been getting the least amount of attention; what effects does the economy have on our health as a society? The World Health Organization has defined health as being "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity”. So,…

    • 995 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Response To Bernanke
    • 1121 Words
    • 5 Pages

    Response To Bernanke

    The unemployment rate had remained relatively stable during 2006 and 2007, hovering in the 4.5%-5.0% range. So, this rapid rise in unemployment confirms the nation is facing serious economic problems. As discussed earlier, the GDP and CPI indicate that our economy has been in a recession since December 2007. And upon closer study, the 2008 monthly unemployment rates do not start to steeply incline above the 5% threshold until May 2008, a few months after the start of the recession. This is consistent with unemployment being a lagging indicator of the…

    • 1121 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    American Unemployment
    • 1368 Words
    • 6 Pages

    American Unemployment

    The issue of unemployment in America has been one of the most significant political topics. In August of 2001, the unemployment rate of the US was approximately 4.9%. Now, 10 years later, the unemployment rate has nearly doubled, and is currently 9.1% ("U.S. Bureau of Labor Statistics."). Unemployment has become a major problem today because of its negative effects on the economy overall. The American Recovery and Reinstatement Act was passed in 2009 by President Barack Obama with the aim of reducing unemployment rates and improving the economy through increasing unemployment benefits and government spending on infrastructure (Burtless). These actions were supposed to have stimulated economic growth and reduce the unemployment rate, but have been ineffective overall (Geewax). In a new effort to combat the unemployment which plagues the US, President Obama proposed the American Jobs Act to a joint session of Congress on September 8, 2011 ("Fact Sheet: The American Jobs Act."). Harry Reid, Senate majority leader, introduced the bill to Congress on September 13 ("S.1549: American Jobs Act of 2011").In his televised speech on September 8, President Obama stated that the purpose of the American Jobs Act was to " to put more people back to work and more money in the pockets of those who are working" and "provide a tax break for companies who hire new workers, and it will cut payroll taxes in half for every working American and every small business (Obama)." The American Jobs Act will cost nearly $447 billion, which will be financed through additional deficit reduction ("Fact Sheet: The American Jobs Act."). The overall goal is to cut taxes for small businesses to encourage them to hire new employees, prevent current workers from losing jobs, and spending more on infrastructure to provide work for the unemployed ("Fact Sheet: The American Jobs Act.").…

    • 1368 Words
    • 6 Pages
    Good Essays
    Read More

Related Topics