Unemployment In aspect of economics, a person who is willing and the ability to work for paid, but has no yet to find job, it is considered to be unemployed. Unemployment in the working population percentage in the line with the “unemployed”. Technical unemployment is caused by science and technology progress,such as the industrial revolution caused a large number of labor population of unemployment. Frictional unemployment, it causes is that when people gives up the original work and looks for new job, may take a long time, in the flow of information is not involved in the job market. There is another kind of frictional unemployment in modern society, people with higher degree may not able to find satisfied work, also not willing to work in low labor market. It will tend to some social problem. …show more content…
America economy took a barely month for the bubble of optimism at start of the year deflate. The unemployment rate dropped to 6.6% in January from 7% in November, it could hit the Federal Reserve’s 6.5% threshold. The unemployment rate is saying something important that is America’s labor supply may be permanently stunted. If the economy is operating closer to potential, using all available labor and capital, it will less downward pressure on inflation than the Fed has assumed. If the unemployment rate understates the output gap. Indeed, for the purpose of Fed, it may even be overstating the gap. This is because people unemployed, the longer the more attention they from recruiters and not actively looking for work. So they are not much of curb on wages. There is 18% of the long-term unemployed quit the workforce each month in 2008. Meanwhile, the rate of they find work has decreased to 10% per month. They found that is usually temporary or part-time work. Therefore, more than unemployment rate is drifting back to the edge of the labor market. More fiscal and monetary policy should stimulate to save them a few year