Essay on Unemployment, It Gave Knowledge About How The U.s. Economy

834 Words Dec 1st, 2015 4 Pages
In the article that I have read on unemployment, it gave knowledge about how the U.S. economy (2015) was expected to continue on its previous growth path and on into at least the first quarter of next year (2016). The GDP growth rate is expected to remain somewhat consistent in the 2.25 percentage range. There has been a decline in the unemployment rate (now at 5.5 percent). There is also minimal improvement in disposable income that have raised spending. Simultaneously, GDP growth has also remained indifferent due to cautious consumers who have squeezed by a small rise in wage rates. The continuous improvements in employment rate and increases in consumers ' personal disposable income have positively affected consumption and, subsequently, growth in the economy. The continued gains in the stock market have also contributed to higher consumer spending. The unemployment rate is expected to be 5.28 percent by the first quarter of 2016. The declining unemployment may provide market power to employees to negotiate better and potentially higher wages after several years of stagnation.
Employment is major in economic development. The article talks about how the weekly unemployment claims increased from 277,000 to 279,000 in the U.S. alone. There were fourteen weeks of consistent unemployment that have remained below 300,000 claim mark. End of May 2015, the total number of unemployment claims received had increased from 61,000 to 2.27 million claims. That’s a huge significance.…

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