Demographic Breakdown of Unemployment and Non Labor Force Workers in the Nation
There are many different age brackets, genders, and ethnicity that make up unemployment in the labor force. Some of the same people who were once in the labor force also make up the workers who are not counted in the labor force anymore. Unemployment is important to the economy and the society that we live in because the more people without any jobs and/or not having a legitimate source of income will increase crime, poverty, political unsteadiness, downgrade health standards, and mental health problems. Unemployment can also cause underemployment which is not good for the economy. Underemployment, in one of its usage, is defined as the employment of workers with high skill levels (college degree or many years of experience) working low wage jobs that do not require any of their skills. Therefore, someone who is a doctor who could save many peoples lives is reduced to working at a fast food restaurant. That means that there is one less doctor in the economy that could be using their skills for a cause instead of having their skills go to waste. Even though all these things just stated are all dreadful things, there are some advantages from unemployment. Unemployment is one of the factors that keeps inflation from being high and/or accelerating. According to the Phillips curve, unemployment and inflation have an inverse relationship. Therefore, when inflation goes up, unemployment goes down and vice-versa. Also, the natural rate of unemployment theory or the Non Accelerating Inflation Rate of Unemployment (NAIRU) states when unemployment goes above the equilibrium, the inflationary expectations rise which causes inflation to accelerate; when unemployment goes below the equilibrium, the inflationary expectations fall which causes inflation to decelerate; when unemployment equals the equilibrium, the inflation rate tends to stay the unchanged unless something from outside the...
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