Unemployment Rate And Unemployment Essay

Highlighting an interesting topic in the economic sector, Mr. Rick Newman develops a valuable analysis based on the data extracted from the Housing Market Recovery Index (Housing MRI) research project. Using two different charts that belong to the same general data (the market’s leading housing recovery cities and the market lagging housing recovery cities), this economist creates a close relationship between Unemployment Rate and the Average home price change since the housing market bottomed out. Mainly based on percentages and average data, the author states a negative correlation between these two terms (as home price changing percentage increases, unemployment rate decreases; and vice versa). In the leading cities, the average unemployment rate was 7.1%, which is the below the media value (7.4%), and the home price change percentage was 62.6%. In the other hand, the lagging cities had an average unemployment rate of 9.3% (way over the media), and the home price change percentage was 15.9%. These percentages clearly demonstrate the negative correlation! But to approach this problematic from a different angle, we should first take a look at the main cause in this research: The Housing Bubble in …show more content…
So these companies, stopped working as well. The point of all this analysis is to prove that due to these failures (increasing the lack of sectors to work for), unemployment rate started to hit the U.S. in a hard and destructible way. So let’s take the lagging city Baltimore to support our hypothesis. According to FoxNews.com, Baltimore is suffering major financial problems due to bankruptcy: “The Baltimore city government is on a path to financial ruin and must enact major reforms to stave off bankruptcy, according to a 10-year forecast the city commissioned from an outside