The article we Chose to write about is called, “U.S Unemployment Hits 16-Year High: 7.2” The article starts off by pointing out that the unemployment rate is at 7.2 and that this is the highest it’s been in 16 years. Last year in 2008, 2.6 million jobs were lost and 11.1 million workers are now considered unemployed, says the labor department. (Reynolds, 2009) This is the largest decline in unemployment since 1945. (Reynolds, 2009) This is a huge sign that we are in dire times and unemployment must be taken seriously. The unemployment rate is continually rising because of the lack of jobs and the recession.
The unemployment rate is the percentage of the labor force that is unemployed. To determine the unemployment rate, a survey is given out and two questions are asked. The first question is did you work for pay in the prior week? The other question is did you look for work in the prior month? If you answered no to both questions you are considered unemployed. If you answer yes to question one then you are considered employed. If you answer no to question one and yes to question two then you are considered unemployed.
To compute the unemployment rate use the following example. Let’s pretend that there are 32 people unemployed and 100 people in the work force. The unemployment rate would be 3.125. This was calculated by dividing 32/100 =3.125 as the unemployment rate. A recent real world example is the unemployment rate of March in 2009. The unemployment rate is 13,161 and the civilian labor force is 154,048 according to the Bureau of Labor and Statistics. The unemployment rate ended up being 8.5 as of March 2009. (Government) There are other forms of unemployment. Cyclical Unemployment occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high. (Government, 2009) Structural Unemployment is when an unskilled worker like a...