Unemployment in the U.

By Dasun, Malika, Dhevin and

Zachary

Content
Unemployment In the US
In depth study
How to prevent
What has the U.S done
Quiz

About Unemployment
What is Unemployment?
unemployment is a term given to people who are able and
willing to work at the going wage rate
but
is unable to
find work

Types of Unemployment?
Frictional
Cyclical
Structural
cyclical

How is it calculated?
it is calculated as a percentage by dividing the number
of unemployed individuals by all individuals currently
in
the labor force.

Causes of unemployment
Wage rises- The quantity of labor demanded by firms falls as
wage rate increase.
Inflation- If inflation is higher than that of a competitor the
exports of that country would be relatively more expensive and
imports relatively cheaper both of which probably lead to a fall
in the market of local products and therefor a fewer jobs in the
country which has higher inflation.
Lack of demand- if the growth of an economy slows down,
then demand decline and as a result the firms cut off workers.

Significant increase in the working population over the

last few years
New technology- can replace human labor, as a result
unemployment will rise

In the U.S
Unemployment rate: 6.1%

In depth study
Shows the ups and downs of unemployment in a the year
2011

How to Prevent
1. Expand, support, and publicize work-sharing unemployment
insurance programs.
2. Lower the minimum wage for the long-term unemployed and for
inexperienced workers, and couple it with an EITC-like payment.
3. Offer UI-funded relocation subsidies for the long-term unemployed.
4. Provide lump-sum UI payments, and bonus payments to workers
who find jobs.
5. Reform disability insurance so that it is no longer a permanent exit
from the labor force.
6. Offer assistance to long-term unemployed workers who want to start
small businesses and can demonstrate a credible business plan.

How to prevent cont.

7. Increase high-skill immigration.
8. Push states to adopt right-to-work laws.
9. Delay Obamacares employment-reducing provisions at least until the labor
market has significantly improved.
10. Reduce the licensing and administrative barriers facing would-be
entrepreneurs.
11. Encourage domestic energy production.
12. Consider temporarily eliminating or reducing the capital-gains tax on new
businesses investment.
13. Permanently reduce the payroll tax and pay for the reduction by, say,
increasing Medicare and Social Security eligibility ages.
14. Reduce occupational licensing requirements.

What has the U.S done

Interest rates have barely been above zero and trillions of dollars have
been created through the quantitative easing process. Federal Reserve
Chair Janet
Renewed the emergency unemployment benefits program .

Quiz
What almost caused a second depression in
2008?
what are 3 ways of preventing/ lowering
unemployment?
What is the disadvantage of fiscal policies?
why is unemployment usually lower in July?
What is the unemployment rate of the U.S?
Chocolates for those who answer :D