The Unemployment Rate

The unemployment rate from 2008 to date has been 9% and above in the United States and this is due to a significant amount of job losses both in the private sector and the public sector as well. There are many explanations given by different experts in trying to come up with a perfect answer to this problem but still there are millions of Americans that have not been able to find a full time job even after searching hard for an entire year.

The economic concepts I think will play a major role in my research includes some of the types of unemployment and these include frictional, structural, and cyclical. Frictional unemployment which is also referred to as voluntary is due to people moving between jobs and structural on the other hand is a situation where people are jobless because of capital labor satisfaction. Finally cyclical which is referred to as involuntary is due to lack aggregate demand. For example when there is recession we normally see high unemployment rate because of industrial closures and layoffs which is the one I think through my finding the United States is facing recently.

Secondly, what are the major reasons of high unemployment rate will also be part of my research. According to some economist there are five major factors why the job market is still entirely hopeless and these include lack of economic growth. "Other things being equal, the greater the amount of goods and services produced the greater the labor required for production because economic growth and employment go hand in hand." Farrell .E. Block source- http://www.cato.org. Oct. 10th 1981. Unemployment: Causes and Cures.

The other factor includes fewer job openings in the job market and this has make the entire job market in the country less optimistic of new job openings both in the private and public sector. Thirdly, the other factor to be blame is due to increase in government sector layoffs which were regarded as one of the safest jobs in the