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Fall Term

In: Business and Management

Submitted By armandobendito
Words 562
Pages 3
After reading the article on a recent unemployment report issued by the Bureau of the Labor Statistics the main points on the job creation, the decrease on the unemployment rate, and the facts on the labor force participation rate reaching a dramatic low were well discussed. What exactly might’ve caused these events to happen in the labor market? Unemployment always rises during recessions and usually falls during periods of economic expansion. The unemployment rate is also a good indicator of how easy or difficult it is to find a job given the current state of the economy. It can overstate the true level of unemployment. Even if the labor market is healthy, it takes time to find the right job and during that time one is considered as “unemployed”. It can also understate the true level of unemployment. One is not considered “unemployed” if they have given up looking for a job because there are no jobs available. Generally, there is a strong negative relationship between growth in the economy and the rate of unemployment. In the article they mention that the U.S. economy added 148,000 jobs which was lower than expected. Following this downward movement, the unemployment rate fell to 7.2 percent and according to the Bureau of Labor Statistics, that’s the lowest it’s been since November of 2008. In addition to all of this, the private payroll creation stood adding 122,000 with state and local government adding 28,000 positions and cutting 6,000 by the federal government. With all this information economists were expecting a steady jobless rate and 180,000 new positions. Those who have quit looking for work of that are considered underemployed are also taken into account when it comes to measuring unemployment. This particular group of individuals also lowered they’re percentage down to 13.6 percent. This report also provided the suggestion that the job market is

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