Unemployment factor of a society is subject to everyone’s primary attention. Increasing unemployment rate can impact on the economy’s performance dramatically. The unemployment rate shows the number of unemployed persons as a percentage of the entire work force. Weak demand for hiring new employees shows that the economy is stagnant and that there is less potential growth. An economy with more new employment opportunities shows significant growth. The after affect of the global economic recession is unemployment, inflation and fall in the real GDP rate. Most important issue which is faced by the elected persons is unemployment. They must ensure wellbeing of the individuals residing in the society.
CURRENT OFFICIAL UNEMPLOYMENT RATE
According to the data collected from the report of Bureau of Labor Statistics, it can be stated that the employment situation of the economy for the month of August 2013 showed a little improvement in the overall employment figures. The total unemployment rate is 7.3%. The overall figures improved by 169,000. The employment opportunities increased in retail trade and in the healthcare segment (BLS).
EXPLANATION OF THE LATEST PRESS RELEASE FROM THE BUREAU OF LABOR STATISTICS
The explanation of latest unemployment trends as explained by the Bureau of Labor Statistics in their latest press release shows that the economic conditions of the economy are improving. Due to the worldwide recession the economic stability was badly disrupted. This resulted in excessive unemployment amongst the locals. The government and the reforming bodies treated unemployment as a major economic issue. Appropriate remedial measures and change in policy revived the economic stability and improved the overall unemployment rate.
A decrease in the unemployment rate was recorded for the month of August 2013. The unemployment rate for that month was 7.3%. On assessing the economic trends from that of the previous year 2012 a prominent change can be noted. The unemployment rate for August 2012 was recorded to be 8.1%. This shows an improvement in the overall economic conditions and shows that the impact of recession is reducing with the passage of time (BLS).
The total number of unemployed persons amounted to 11.3 Million people. The unemployment rate of 7.3% has shown improvement in the economic trends. A year ago the same rate was 8.1% which has proved to show stability in the economy. If the assessment of the unemployment rate is done by dividing the worker groups it can be noted that the unemployment rate for major worker groups residing in the US are following (BLS):
The Long-term unemployed labor amounted to 4.3 Million people. These people were recorded to be jobless for 27 weeks or more. The figures remained unchanged as compared to the previous figures. This figure was amounting to 37.9% of the total unemployed population. When the figures are compared to that of the previous year it can be noted that the total number of unemployed have declined by 733,000 (BLS).
COMPARISON OF THE U-3 AND U-6 UNEMPLOYMENT RATE
The unemployment rate of the population is calculated on the basis of assumptions. Because of this several rates are aggressive towards providing the appropriate figures. The U-6 unemployment rate includes the people in its calculation who are in search of work. It also counts those workers who are on part time employment. Some of these workers who have been included in the calculation are working on a part time basis. This can spoil the accuracy of the estimated figures. Due to this factor U-6 is considered to be more accurate as compared to the U-3 figures.
The employment rate is more accurately calculated in the U-6 measure because all the factors are considered thoroughly. This includes the figures of part time workers and those who are still seeking jobs actively. Those individuals who are working part time and have become tired of searching for jobs are also included in this database. U-3 is the official measure of calculation which is used by the state to show the unemployment figure. U-6 is a measure which elaborates and gives a more detailed view of unemployment (The Economist).
For the month of August 2013 the following unemployment rates were calculated
(Adapted from: Macro Trends)
This shows that a huge amount of people were on part time jobs, but because they were working the government failed to include them in the unemployed list. This recorded a decrease in the overall rate of unemployment (Luciano).
BLS. The employment situation – August 2013. Sep. 2013. Online 11 Sep. 2013. http://www.bls.gov/news.release/pdf/empsit.pdf
The Economist. Generation Jobless. Apr. 2013. Online. 11 Sep. 2013. http://www.economist.com/news/international/21576657-around-world-almost-300m-15-24-year-olds-are-not-working-what-has-caused?zid=295&ah=0bca374e65f2354d553956ea65f756e0
Macro Trends. U6 unemployment rate. 2013. Online. 11 Sep. 2013. http://www.macrotrends.net/1377/u6-unemployment-rate
Luciano, Michael. Real unemployment rate: U6 rate stays at 14.7 percent, as U3 falls to 7.8 percent. 2012. Online. 11 Sep. 2013. http://www.policymic.com/articles/15908/real-unemployment-rate-u6-rate-stays-at-14-7-percent-as-u3-falls-to-7-8-percent