Discouraged workers are those who have lost their job and lost the motivation to find a new job because they have had no success in obtaining a new job. This will also occur when the person is facing long term unemployment. If an unemployed worker becomes a discouraged worker, then the unemployment rate will decrease. This occurs because the worker moves from the unemployment category into the not in the labor force category. Even though the number of unemployed and the labor force are decreasing, the numerator is decreasing more than the denominator. Therefore, the unemployment rate would decrease. This does not accurately depict the real situation. The unemployment rate could be very close to zero if all unemployed people were discouraged from working. When looking at the unemployment rate, it is not completely accurate because of this problematic situation. Even with that factor considered, the unemployment rate is still useful when looking at changes that could occur within the economy. Within the unemployment sector, there are different kinds of unemployment.
Frictional unemployment is the unemployment that occurs when workers are searching for a job that matches their skills and preferences. A person could be changing from one job to another. While they are looking for a new job, they are considered to be frictionally unemployed. This type of unemployment is usually …show more content…
Most economists agree that anywhere from 5-6% is a healthy level on unemployment. The deviation from this rate, is known as cyclical unemployment. The United States’ unemployment rate has been dropping in recent years. A recent high of 9.9% unemployment in 2010, recorded by the BLS, was followed by a slow decline in the preceding years. Currently, the unemployment rate for the United States is 4.9%. The rate will most likely cease to be any lower due to frictional unemployment. For the most part, those who are looking for work are getting jobs. The job market affects other industries. It provides the workers who are needed to run factories or provide