Macroeconomics The Unemployment Rate - 1948 Words

Macroeconomics: The Unemployment Rate The more Americans employed means we as a nation are experiencing economic growth. However, if there is a high unemployment rate this interprets that more Americans are struggling in our economy. There are several types and reason for high unemployment. Though America’s unemployment rate was 5.6%, as of December 2014, every state’s unemployment rate varies for different reasons. America’s unemployment rate has a direct negative impact on our entire nation’s economy and affects individual firms, organizations, and people. Whether it is high or low, the unemployment rate has proven its ability to have a strong negative impact on individual firms and organizations. As of December 2014, America’s†¦show more content†¦Because of the growth of the high unemployment rate employers may be unwilling to hire people. With more people out of work, more civilians face an unfortunate standard of living and lower quality of life. Generally, when the unemployment rate rises, consumers have less spending power. A lower unemployment rate, infers more people have jobs and are enjoying a better quality of life and higher standard of living. It also means that companies, firms, and organizations are receiving more money. When more people have jobs, they acquire more money and spend it. Such places include stores, malls, and fast food restaurants. This spending results in economic growth throughout our economy. Unfortunately, there will always be a percentage of people who do not have a job which implies t hat the economy will never experience economic growth to its full extent. People are affected by the four types of unemployment that occur throughout the economy which are frictional, structural, cyclical, and seasonal unemployment (Nickels, McHugh, McHugh, 2013). Sometimes people can’t deal with certain working conditions, supervisor, boss, or the job in general. This causes them to quit leading to frictional unemployed workers; people right out of college or high-school entering the labor market or those returning back are also considered part of frictional unemployed workers as well (Nickels et al., 2013). My father has