Essay Unemployment Is Defined As The State Of Being Unemployed

808 Words Apr 27th, 2015 4 Pages

Unemployment is defined as the state of being unemployed. When an individual is actively searching for work but is unable to find a job they are considered unemployed. The unemployment rate has an effect on the overall US economy. The unemployment rate is usually a good measure of how healthy the economy is. That is if its low the economy is doing well with jobs, if the unemployment rate is high generally the economy isn’t doing so hot. The unemployment rate is measured by the number of unemployed people divided by the total number of people in the labor force.
There are a lot of different variations when considering the unemployment rate and who is considered an unemployed person and who is considered a part of the work force. For example, the US Bureau of Labor Statists cites the U-3 unemployment rate as the official unemployment rate, but this definition of unemployment does not consider people who are looking for a job in a tough rescission and get discouraged and no longer look for work. Various ideas different among the definition of unemployment between economists. Keynesian economics believe that there is a natural rate of unemployment because the skills of people and the positions available don’t always match up. In addition, Neoclassical economics believe that the labor market is efficient if it is always left alone, but laws like minimum wage and unions take the balance and through it off, making jobs unavailable for some people causing…

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