Jackie Foster


As of March 2016, the unemployment rate in the United States was 5.0%. Some may say this is great when compared to the 10% recession rate. However, looking at past trends and predictions for the future, it seems that the current unemployment rate is not substantial and the nation should strive for a rate of around 4% to fully benefit the economy.

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Unemployment in America: The Decline of the Full-Time Job

Key Terms

Labor Force: The total number of adult non-institutionalized civilians who are either working and on a payroll or are actively seeking work.

Employed: The number of adult civilians who are working and on a payroll.

Unemployed: The number of adult civilians who are not working but actively seeking work.

The following video explains that the unemployment rate might not mean what you think...

Is the Unemployment Rate Lying to You?

High unemployment rate problems

  • The personal problems, such as the load that weighs on a family's shoulder when a parent is unemployed
  • The money the government spends on unemployment benefits, which was over $520 billion in 2012.
  • The government isn't receiving as much money from income taxes, because less people are getting an income.
  • As well as this, most of the money that the government hands out to unemployed citizens comes from taxes. If there are less people paying taxes, there is less money to spend, but it's being spent on more people!
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Low unemployment rate problems

  • There is a high risk of inflation occurring
  • There is a risk of having full employment, which scares a lot of people.
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Full Employment Economics

Why is the unemployment rate high?

One of the biggest, emerging factors... TECHNOLOGY!!!

  • Because of new technology and how fast the industry is growing, many fields are reducing jobs because technology can do labor faster than humans ever could.
  • Delivery and emergency rescue
  • Construction
  • Medical
  • Writing
  • Financial
  • By 2030, 90% of all the news will be written by computers
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What kind of rate do we want?

After researching and writing my paper, I found that the best target unemployment rate should be around 4%. This way, the rate is not too high and not too low. No matter what, there will always be concerns and risks, but this seems to be the best happy medium.