Throughout the world, unemployment is a major concern that governments are trying to deal with and to date; little or no success has been realized in most countries. Instead, the rate of unemployment has continued growing month after the other, which obviously affects GDP directly. Hence, as the rate of unemployment soars, GDP maintains a downward trend.
GDP is a measure of how well a specific economy is doing and obviously, high unemployment rate is an indication that the economy in question is not doing well. In the recent past, a survey on the rate of unemployment in the U.S. has revealed certain aspects worth consideration and discussed herein are details of the most current survey.
By September, the unemployment rate in the U.S. increased to 7.9 million. This is an all time high in the past five months and research indicates that since 1948, this rate has ever been on the upward trend. This research was further spread to cover various categories of the prospective working class.
Among the groups featured in respect to the unemployment rate of each in the U.S. included Asians at 3.9%, adult men at 4.7% teens at 15.8%, adult women at 4.4%, Blacks at 8.3%, and whites at 4.4%. An increase in employment-population ratio and labor force participation was also noted.
In respect to this, the number of those who took to part time jobs experienced little change and they had opted for this, either because a full-time job was not available or due to hours that had been cut back. The survey also assumed that anyone that had not sought employment for the past four weeks was not to be part of the unemployed group.
As a result, this gave rise to the marginally attached labor force, which represented 1.8 million individuals. This group is composed of those willing and available to work and 553,000 of these, made the discouraged workers group. These are those who believe that no opportunities for employment exist out there for them. The remaining ones were those with family responsibilities or in school, which meant that they could not look for jobs and these were a total of 1.3 million individuals.
In reference to the U.S. GDP, more goods were imported in the recent past compared to goods exported from the U.S. to other nations. Government consumption and investment accounted for 18% of the GDP while private investments represented 16%. On the other hand, services consumed represented 45% of the GDP and goods consumed stood at 23%. A comparison of GDP Growth vs Unemployment Rate between various country is shown in this chart.