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Three Labor Market Indicators

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The Rate of Unemployment

The unemployment rate is an indicator which shows that people looking for employment but still not get job. It includes total percentage of people in labor force which comes under the category of unemployment.

Rate of unemployment is = People who have no job/labor force X 100

Labor force can be explained as=employment+ unemployment people

In the year 2010 in June employed people is 139.1 million and unemployed is 14.6. With the help of solution one can easily found out labor force which is total of 139.1+14.6=153.7 millionwhereas the rate of unemployment is 14.6/153.7*100=9.5 percent.

 You will come across with the rate of unemployment in fig 5.2 which is from the period of 1980 to2010. The rate of unemployment is average in nature and includes 6.2 % which is equal with 9.5 million which is unemployment rate in the year 2010.

 The rate of unemployment changes during business cycle period and reach at highest value when its ends in recession period.

 The highest employment rate in recession period of 1982, 1991, 2001 is very low than the last year.  In the year 2008-2009 recession ends up with trend which is downward in nature.

Employmentratio to population

Employment ratio to population will include employed people/ population of working according to age X100

 In the year 2010

Employed people is 139.1 millions

Working age is 237.7 millions

We will come out with result when 139.1 million people/237.7 millions X100=58.5 %.

 You will come across with employment ratio to population in fig 5.3 which shows upward trend in 2000 and after that downward trend. It will lead to the creation of U.S economy in 2000where they have introduce jobs at fast rate more than the population of working age. There will be change in the indicator which falls at the time of recession and increases at the time of expansion.


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