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.
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...
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!
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.
Why is the unemployment rate high?
- 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
- By 2030, 90% of all the news will be written by computers