Economic News Investigation

By; Katie Isbell

Unemployment dropped to a six year low or 5.8%. Employers added 214,000 new jobs to their payrolls. The unemployment rate fell from 5.9 percent, even as more people entered the labor force That was a sign of strength in the jobs market. Reuters had forecast 231,000 new jobs last month and for the unemployment rate to hold steady. Wage growth is the missing piece of the jobs recovery and without significant increases, most economists say the Fed will be in no rush to lift benchmark lending rates that it has kept near zero since December 2008. Hourly earnings only rose by 3 cents. Which keeps it in the range its been in in the last few years. Americans who are employed or at least looking for a job, increased by one-tenth of percentage point to 62.8 percent, bouncing back after two straight months of declines. Unemployment rates are dropping by almost 10 percent since 2009. Payrolls are also rising.

This article relates to unemployment. It goes along with Natural Rate of Unemployment, which is when there is no cyclical unemployment. This article talked about the unemployment rates being at a healthy rate, which would not happen if there was a huge amount of people on cyclical unemployment.

U.S. Federal Reserve Chair Janet Yellen on Friday called on politicians across the globe to get their fiscal houses in order during good times to prop up economies during times of turmoil. She blamed part of the slow global economic recovery on weak government support. She took aim at both U.S. political gridlock after the 2007-2009 financial crisis and the austere policies across Europe as the region struggles with persistently low inflation.

The crisis led major central banks to use unconventional tools to speed up recovery. For its part, the Fed cut interest rates to zero and more than quadrupled its balance sheet to $4.4 trillion through three rounds of bond buying. Some politicians thought this would lead to unwanted inflation. The unconventional tools helped support domestic recovery and global economic growth. As central banks are seeking to promote healthy economies focusing on financial stability would play a key role. She did not comment on U.S. monetary policy, specifically, but said central banks globally would need to normalize policy as economic activity and inflation return to normal.

This article talks about government needing to get more involved in the road to economic recovery. The big picture of it has to do with getting inflation back down to normal. Disinflation is what I got out of the article because the lady that wrote it wants the inflation rate to lower slowly.

With the Atlantic cod population at an all-time low, federal regulators Monday announced the closure of commercial and recreational cod fishing. The emergency measures are necessary to prevent "a cod stock collapse" and complete closure of the fishery, which is in the worst shape regulators have seen since they began monitoring the stock 40 years ago. These restrictions will have a significant economic impact on some fishermen this year. The fisherman are going to pay an economic price in exchange for the cod population to rebuild and not become completely extinct. There are regulations on where the Cod are usually caught.

This article had to do with supply and demand. The price of the fish is most likely to go up because there is a shortage. The supply for cod is minimal so as the demand goes up the price will go up. The article also ties in with unemployment because the fishermen are experiencing cyclical unemployment in a way because the fish won't be there today so they won't have a job but the regulations are supposed to lighten up after a year so maybe then they would get their job back.

Target is offering 10% off of its gift cards on Black Friday. Store-brand gift cards help bring shoppers back, and often encourage them to spend more than they usually would. Target also announced a bunch of holiday season deals to get people into its stores. Some discounts, including $50 off of Beats headphones and $10 off an Apple TV, only apply if customers order online and pick up their items at a store. And the store's mobile app will offer 50% off a different toy each day throughout the holiday season.The retailer is hoping the promotions will help it bounce back after a massive data breach that compromised millions of costumer accounts last holiday season. The hack hurt in-store foot traffic throughout 2014.Online shopping growth is expected to far outpace in-store growth this year. So Target wants to give out online deals like giving out gift cards and video games with the purchase of an iPad or other popular items.

This article shows target using an incentive to buy their items and visit their store. If they have good deals and give away free things, their thought is that more people will buy things from them because they think they are getting a good deal.

Gas prices are low, so oil drilling should be low. If gas prices were high then there would be more oil drilling. If the prices are low that means fewer jobs and if the prices are high that means more jobs. Oil prices have fallen by more than a quarter since June, and most analysts expect they'll stay low for a while. That creates a problem for shale oil in particular, which has fueled the U.S. oil boom in recent years. The industry doesn't want to overreact because it is an industry that is used to booming cycles.

This article has to do with cyclical unemployment because the oil workers are getting laid off if the prices are low and they get their jobs back if the prices and oil supply goes back up.