The unemployment rate is the percentage of labor force that is unemployed according to our Principle of Economics book. Although as simple as it may seem it is much more complex in calculating the unemployment rate than what meets the naked eye. First off there are three different types of unemployment including structural, frictional, and cyclical. These calculations must be taken seriously and be very precise for they are important factors when evaluating the economy and its growth. In the following article, “President Obama Is Handing a Strong Economy to His Successor” by Patricia Cohen, she talks about how President Obama and other fellow occupants of the White House are leaving an improving economy to the President elect, Donald Trump.
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Cohen has a few words from Jason Furman, currently chairman of President Obama’s Council of Economic Advisors, inside her article. Furman shares his thoughts on how terrifying it was coming into his office with other key officials as they view latest job numbers of the year from the Labor Department had come. He and other officials were afraid that the economy was following the same path it took during the beginning of the Great Depression. During the Great Depression many people had fallen into debt and many lost their jobs, this moment is historical for the major impact it had on the economy. The Great Depression is a prime example of cyclical unemployment because it was caused by a recession and an economic downturn. The book gives a Case Study for unemployment in the Great Recession which is the downturn that occurred in 2007 Furman was afraid of. Although now, Furman reassures Cohen that the economy is now healthy and …show more content…
He claims it to be an example of the kind of actions he would make as president for blue collar workers. According to Betsey Stevenson, an economist at the University of Michigan and a former advisor to President Obama, manufacturing still drives force on the economy and employs fewer and fewer people. More than 80 percent of jobs today are in the service industry and Stevenson thinks that Donald Trump should be thinking more about how to match workers to these types of jobs. This part of the articles focuses on and gives a prime example of frictional unemployment. “The economy is in a great place and his biggest challenge is continuing that.” Said Stevenson. Although, no matter how healthy the economy there will always be some frictional
Cohen has a few words from Jason Furman, currently chairman of President Obama’s Council of Economic Advisors, inside her article. Furman shares his thoughts on how terrifying it was coming into his office with other key officials as they view latest job numbers of the year from the Labor Department had come. He and other officials were afraid that the economy was following the same path it took during the beginning of the Great Depression. During the Great Depression many people had fallen into debt and many lost their jobs, this moment is historical for the major impact it had on the economy. The Great Depression is a prime example of cyclical unemployment because it was caused by a recession and an economic downturn. The book gives a Case Study for unemployment in the Great Recession which is the downturn that occurred in 2007 Furman was afraid of. Although now, Furman reassures Cohen that the economy is now healthy and …show more content…
He claims it to be an example of the kind of actions he would make as president for blue collar workers. According to Betsey Stevenson, an economist at the University of Michigan and a former advisor to President Obama, manufacturing still drives force on the economy and employs fewer and fewer people. More than 80 percent of jobs today are in the service industry and Stevenson thinks that Donald Trump should be thinking more about how to match workers to these types of jobs. This part of the articles focuses on and gives a prime example of frictional unemployment. “The economy is in a great place and his biggest challenge is continuing that.” Said Stevenson. Although, no matter how healthy the economy there will always be some frictional