The United States has the largest economy in the world. Our economy is the largest in terms of nominal GDP, as well as the second largest for purchasing power (Knoema). The economy is extraordinarily important to our lives. It encompasses the production and consumption of goods and services, trade and jobs. As 2016 is an election year, the state of our country’s economy, now and in the future, has been a huge topic of discussion. This year the economy has been rather stable, with an increased growth of GDP, an unemployment rate of 4.9 percent and an inflation rate of 1.5 percent (Bureau). There has also been significant growth in other areas of the economy such as the labor force, wages, tourism and personal income. Gross Domestic Product,
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The Federal Reserve has stated that the natural rate of unemployment is between 4.7 percent and 5.8 percent (Amadeo, “Why”). This year marks the first time since 2008 that the unemployment rate in the United States has fallen below 5 percent. While the current unemployment rate is low, unemployment cannot be completely eliminated. People will still experience unemployment, as there are four types: frictional, structural, cyclical, and seasonal. Frictional unemployment takes place when employees are searching for jobs and companies are searching for new employees. Structural unemployment is defined as when changes in the economy cause specific industries or specific jobs to need less workers. Cyclical unemployment involves a decrease in needed jobs throughout all industries as a result of a declining economy. Seasonal Unemployment occurs when workers may become unemployed during certain parts of the year, often times due to seasonal changes in weather. Throughout the year, all types of unemployment have been experienced. Hurricane Matthew, for instance, caused damage to numerous businesses and homes on the east coast. The storm damage, as well as the evacuations in parts of Florida, Georgia, and South Carolina caused unemployment to rise in the southeast. Moving into the winter season will also result in seasonal unemployment. Due to the colder weather, many people working in outdoor professions such as …show more content…
This year, the labor force participation rate, which measures how many Americans have entered the work force, has shifted greatly, with its highest point being at 63 percent in March and its lowest point being at 62.6 percent in May (“United States Labor”). With these statistics in mind, the labor force participation in 2016 has been higher than in the previous two years. On average, national wages have decreased since 2015 (“United States Wages”). This has been a very important issue, with many Americans hoping to see an increase in earnings as well as minimum wages. Tourism is a big contributor to our nation’s economy and has decreased significantly from last year (“United States Tourist”). Tourism helps our economy grow by increasing spending, adding to infrastructure and creates more job opportunities. Lastly, personal income has not been as good as the previous year but has increased in the past few months. Income is currently at 0.6 percent and relies on both jobs being created and wages being increased (“United States
The Federal Reserve has stated that the natural rate of unemployment is between 4.7 percent and 5.8 percent (Amadeo, “Why”). This year marks the first time since 2008 that the unemployment rate in the United States has fallen below 5 percent. While the current unemployment rate is low, unemployment cannot be completely eliminated. People will still experience unemployment, as there are four types: frictional, structural, cyclical, and seasonal. Frictional unemployment takes place when employees are searching for jobs and companies are searching for new employees. Structural unemployment is defined as when changes in the economy cause specific industries or specific jobs to need less workers. Cyclical unemployment involves a decrease in needed jobs throughout all industries as a result of a declining economy. Seasonal Unemployment occurs when workers may become unemployed during certain parts of the year, often times due to seasonal changes in weather. Throughout the year, all types of unemployment have been experienced. Hurricane Matthew, for instance, caused damage to numerous businesses and homes on the east coast. The storm damage, as well as the evacuations in parts of Florida, Georgia, and South Carolina caused unemployment to rise in the southeast. Moving into the winter season will also result in seasonal unemployment. Due to the colder weather, many people working in outdoor professions such as …show more content…
This year, the labor force participation rate, which measures how many Americans have entered the work force, has shifted greatly, with its highest point being at 63 percent in March and its lowest point being at 62.6 percent in May (“United States Labor”). With these statistics in mind, the labor force participation in 2016 has been higher than in the previous two years. On average, national wages have decreased since 2015 (“United States Wages”). This has been a very important issue, with many Americans hoping to see an increase in earnings as well as minimum wages. Tourism is a big contributor to our nation’s economy and has decreased significantly from last year (“United States Tourist”). Tourism helps our economy grow by increasing spending, adding to infrastructure and creates more job opportunities. Lastly, personal income has not been as good as the previous year but has increased in the past few months. Income is currently at 0.6 percent and relies on both jobs being created and wages being increased (“United States