In America

UnemploymentWhy does the government collect statistics on

the unemployed?

Why do we care?

UnemploymentThe Government collects statistics on the

unemployed for many reasons . Some areas to look at are.1.Is the unemployment rat increasing or

decreasing?2.Is it in just one area or nation wide?3.Who is losing there jobs?

Should the Government get involved?

Effects of UnemploymentProduction loss.

The unemployed person is not helping the economy

Spending loss. The unemployed person most likely has no income

so they have less to spend and stimulate the economy in an essence, taking away from someone else’s job.

UnemploymentWho is considered to be Unemployed and

who is considered to be employed?

People with jobs are employed.People who are jobless, looking for jobs, and

available for work are unemployed.People who are neither employed nor

unemployed are not in the labor force.

UnemploymentUnemployed are those who are currently

seeking work or have been with in the last four weeks.

People not in the labor force are. Those under 16 or confined to prison or

nursing home. Active duty military.Active StudentRetired

UnemploymentUnemployment starts a snowball effect

Once people become unemployed they spend less

Spending less means other companies don’t make as much money.

This then leads to other companies down sizing.

UnemploymentWhy have the unemployment rates in

America suddenly increased?

UnemploymentOne of many reasons for the sudden increase in

the unemployment rates was the construction surge.

Construction workers mainly were a large part. Many workers without a college education found themselves doing construction work for the last ten years that has been a huge booming industry.

UnemploymentWhen the construction slowed many of these

workers lost there jobs.

Since they had no other job experience and had no college degree this made it very challenging for many of them to find work.

UnemploymentAgain there is a snowball effect with the

unemployment. as soon as word gets out people get scared

and don’t want to spend money or hire because of the “News” of a recession .

When people and businesses do job cutting and less spending then this leads us in the direction of a recession.

Similarities of the Recession and the Great Depression

1.The Stock Markets Drops In the depression it crashed. This hurts the top 1% of the high income earners

2.Government Policy The Obama administration plans to raise taxes on the

affluent, cut them from everyone else and take other steps to reduce inequality.

3.Education People that would have normally gone into the work

force are now going back to school. This will provide our economy with more educated workers in the future.

Some Websites to Followhttp://topics.nytimes.com/top/reference/times

topics/subjects/u/unemployment/index.html (The New York Times)

www.bls.gove (Bureau of Labor Statistics)