Business Communication

3 Pages 677 Words

_Unemployment and it's effects _ By: Felix Hernandez Unemployment Ever think
about what happens to people when they loose their job? Where do they go? What
do they do? How do they provide for their family? These are everyday facts
about unemployment, one of the largest measuring sticks for an economy.
Unemployment is an important facet of every economy. Although it may seem
logical to keep unemployment rates as low as possible, that is not the case.
If unemployment rates drop to far down, this may lead to inflation. The reason
being that if there is a low unemployment rate then there will be a shortage
of skilled workers, thus pushing employers to raise wages and benefits which
will in turn raise pricesOver the years, there have been really high highs
and really low lows when it comes to unemployment. Currently the unemployment
rate is at it’s lowest in twenty five years. The booming economy has helped
drop the unemployment rate to below four percent, which is the lowest since
1970. These low rates have been caused by many factors. Some of which include
growth in the industrial output of the United States, a booming stock market,
and some natural elements such as recent hurricanesIn order to asses the
affects of these different factors on the unemployment rates, economists must
have some type of system to estimate the unemployment rate. One major system
that is used deals with the number of “help wanted” ads that are published.
This process is a compilation of the number of help wanted ads that are
measured in fifty-one major newspapers across the United States. These counts
are then converted into an unemployment percentage through the use of an
indexIt is no secret that the goal of every country is to have a productive
and stable economy. One which will allow it’s people to function and operate
effectively. Currently in the United States, the economy is booming. This boom
in the economy has lead to a ...