Unemployment in Macroeconomics

Unemployment in Macroeconomics

Introduction

The number of new applicants regarding unemployment benefits in the U.S. increases from 25,000 to 370,000 during the last 48 weeks, compared with last week. It shows that the rate of unemployment is quite higher in United States.

The number of people unemployed rose to 171,000 in October, as the Labor Department announced on Friday in Washington. Economists had expected only 125,000. In addition, in August and September came together 84,000 more jobs than previously recorded.

United States after the financial crises has faced such a critical situation that they did not have faced before. However, the US government has developed certain policies and adopted a number of steps to address this major issue. Mostly the American s is blaming the current Government for this cruises situation but in actual terms, the government of Obama has taken some crucial steps to solve the issue. The Government is trying top create jobs and to establish the sector which have lost their integrity in the crises of 2008 (Samuel, 2011).

Discussion

The unemployment rate still stood at 7.9 percent, after reaching 6% percent in last September, the lowest level since January 2009.The reason: Because of the brighter prospects in the labor market, again more Americans are actively seeking a job. President Obama last year visited India so that they can develop a working relationship with the country in order to have an employee exchange program. The employment rate is still relatively low in US and it sits her biggest challenge for the US government. The biggest problem is not the labor market but lack of demand after the explosion of the housing bubble, with a huge debt of classes that explains not consuming enough to stimulate economic growth. The biggest problem is not the labor market but lack of demand ...