Write a research analysis paper on the causes of unemployment.Some people argue that the official unemployment rate understates true unemployment, while others argue that it overstates true unemployment.
Explain each of these positions, giving some examples of what might cause the official rate to be either too high or too low.
Personally reflect on whether you think we should make any changes to how we calculate unemployment? If so, what would you propose? (Support your answers with academic journal articles.)
Scenario: What if academic inflation caused the creation of a law that required an Associate’s degree to earn minimum wage. How would that affect the economy and you personally?
also answer these two posts:
The position in which people are saying the unemployment rate is understated or overstated is based off of the definition of what it means to be unemployed. When the poll is taken and people say that it is understated, it is because they already work and are being asked to work more by their employers. This is one of the reasons, along with the amount of people who are looking for jobs and have no look getting one. This also affects part time workers as when the unemployment rate is calculated, their work is not fully counted. For overstated, this affects those who are illegally here because some can’t report their work for fear of being taxed/deported. Because of this the unemployment rate isn’t always accurate as there are many factors which make it impossible to keep track over every single person working. There are many ways in which the calculations can be more accurate. For starters offering more jobs and splitting up work. This will be healthier for the employees as they won’t be overworked as well. Along with this, making it possible for immigrants to be able to report their status or labor without penalty. I think the unemployment rate should be calculated by the opportunities that are available, how active the person is in finding and applying to jobs, and the amount of time that has been worked. If having an associate degree was required to work minimum wage, it would affect many people who do not and will not even have the funds to go to school. This could cause the unemployment rate to increase. On top of this, it would be unfair for those who had to pay for a degree to be earning minimum wage, at which there would be protests paying for school.
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The Bureau of Labor Statistics uses two types of surveys to measure unemployment rates in the economy. According to our text, these two types of measures are: household surveys and establishment surveys. Even though these surveys are used as a criteria, for measure, the data reported is not always accurate. It would be virtually impossible to obtain an accurate measure of unemployment rates because every single person does not report. Furthermore, there are individuals in the economy who have trouble finding employment and stop looking due to frustration, etc. According to the text, these individuals are known as discouraged workers. The BLS does not count discouraged workers as unemployed even though they are not currently working or actively looking for employment. This, in turn, could cause the unemployment rate to be understated and, therefore, the data would not be considered accurate. In addition to this, the BLS counts individuals as being employed if they hold part-time jobs but would prefer to work full-time. This, can cause the unemployment rates to be overstated. It is also important to note that the responses given in the household survey are not verified by the Bureau of Labor Statistics — which means that individuals can lie on the survey which, we know, will also produce inaccurate data results such as understating or overstating. Whereas, the establishment survey uses data compiled from individuals who are actually on a business’s payroll, so the data reported from here would seem more accurate.
Personally, I think there are definitely better ways to calculate the unemployment rates in the economy. One way to accomplish this is by using the natural rate of unemployment (NRU). According to Capehart (2019), the NRU is “the rate of unemployment that is consistent with the existing real conditions in the labor market.” By using this unit of measure, more accurate data can be produced as it reflects the real conditions in the labor market as it fluctuates over time. In addition to this, I would also calculate discouraged workers into the category of unemployed because, technically, they are not working so they should be factored into unemployment rates. The creation of a new law requiring an Associate’s degree to earn minimum wage would have an extraordinary impact on the economy. Many individuals, including myself, would not be able to apply for jobs that normally would have not had this requirement in place. In addition to this, many people go into the workforce straight from high school to gain working experience and hands-on knowledge. Requiring individuals to obtain an Associate’s degree in order to qualify for certain jobs forces people do be in school for longer periods of time. As we know, the costs for education is rising and this could be extremely problematic for individuals who me the qualifications for the job but have not obtained the degree. Therefore, they would not be able to get hired and the unemployment rates in the economy would increase.
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