Unemployment in the USA

Unemployment in the USA

By Simon Wijbaillie

Table of contents

• Terminology• Evolution • Effects• Conclusion: future?

Terminology

• Unemployed• 3 conditions:

– Jobless– Available– Efforts to find a job

Terminology

• Labor force:– 16-65 years old– Employed or seeking

• Use? – Unemployment rate:

unemployed/labor force

Terminology

• Nonfarm payroll employment– Number of working-age persons– Exclusions

• Use?– Gauge health of the economy

Sorts of unemployment• Cyclical unemployment• Structural unemployment

– Qualitative vs. quantitative• Hidden unemployment• Frictional unemployment• Temporary unemployment• Seasonal unemployment• Officially: 8.2% ↔ Reality: 22.5%

Evolution: nonfarm payroll employees

Evolution: unemployment rate (%)

Evolution: long-term unemployed (%)

Effects• Loss of income• Smaller capacity• Attack on wages

– Smaller capacity– Higher premium Social Security– Loss of revenu

• More criminality

Conclusion: future?

• Similar to energy crisis 1979• Indications:

– More nonfarm employment– Higher wages– Decline requests unemployment

benefits• Future is looking good!

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