Higher Rock Education - Economics Blog

Healthy and Unhealthy Unemployment - Who Is Included?

Thursday, August 31, 2017

The United States unemployment rate has fallen dramatically over the past decade. Last month the official rate was 4.3 percent, down from 9.6 percent in 2010. Economists refer to today’s rate as “full employment”. Yet we read that unemployment is a problem and there are many long-term unemployed. Are these statements conflicting? No…both are true. The unemployment rate has fallen, but there are many unemployed who are not included in the unemployment rate, and the economy has passed them by. To understand, it is helpful to understand the unemployment rate and the difference between frictional, structural, and cyclical unemployment. More


1

© 2018 Higher Rock Education and Learning, Inc. All rights reserved. No portion of this site may be copied or distributed by any means, including electronic distribution without the express written consent of Higher Rock Education and Learning, Inc.