Unemployment is a state when a person is actively looking for a job and cannot find it. There are two problems of unemployment short run and long run. Every country has some rate of unemployment, while in the US 5% is considered as the natural rate of unemployment. Natural rate is the rate that is considered normal.
Unemployment is measured by Bureau of Labor Statistics (BLS), a part of department of Labor.
Unemployment rate = (Number of unemployed / Labor force) *100
Labor force is the population that is fit to work, this excluded children and senior citizens.
The unemployment rate for April 2014, was 6.3%. This is above the natural rate of unemployment which indicates that the economy is still not recovered properly.
There is always be some unemployment, due to inevitable causes like lays off, searching new jobs, being a full time student at college. However, if the rate is above the natural rate, government can introduce different policies and help the rate do down like increasing the minimum wage.
Unemployment is measured by Bureau of Labor Statistics (BLS), a part of department of Labor.
Unemployment rate = (Number of unemployed / Labor force) *100
Labor force is the population that is fit to work, this excluded children and senior citizens.
The unemployment rate for April 2014, was 6.3%. This is above the natural rate of unemployment which indicates that the economy is still not recovered properly.
There is always be some unemployment, due to inevitable causes like lays off, searching new jobs, being a full time student at college. However, if the rate is above the natural rate, government can introduce different policies and help the rate do down like increasing the minimum wage.
(The above picture is from telegraph.co.uk)
I hope this gave you a little idea about unemployment.
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