Essay about Problems Measuring Real Unemployment?
Unemployment is an essential issue studied in macroeconomics. The unemployment level gives a signal as to the oval state of “how well off” or “how bad “of the current state of economy. Although the statistics are heavily relied upon by governments and state officials in order to make decisions, however there are a shortcomings in measuring its true reflection or the” real unemployment” level. Unemployment is defined by economists as a person who is actively seeking job ad is unable obtain one. Anyone who falls under this definition is considered unemployed, but there are a few sub categories and situations that should be considered. First, there are a number of people who voluntarily leave the workforce and are not actively seeking jobs, in order to collect employment benefits and or other government handouts that are available to them. They intern would claim these benefits while it last, then move on to another program or other handouts from nonprofit organizations, in the mean time they are recorded as unemployed people.
Second , there are discourage works, these are people who had activity sought for jobs for a number of time , however got discourage after a number failed attempts and consequently stopped the active search. Although these people are not actively seeking , they will accept a job once it becomes available to them.
In addition there are a number of people whose hours may…