Look at the Overall Unemployment of US of America

U.S. Job Gains Show Employers Shrugged Off Government Shutdown According to the Ben Casselman in the article “U.S. Job Gains Show Employers Shrugged Off Government Shutdown” which is published January 31 2019, in January United States has been added 304000 jobs in united states and unemployment rate went down only to 4 percent. Labor statistics shows that In January 2018 job appending was over 100 almost double the previous record which prevent the country from recession economic slowdown and the labar marketreversed its downward stimates to upward.

Through all-natural disaster, foreign policy cries, companies kept hiring.

The strong growth on hiring and gain wage put the economy on a strong and sustainable footingUnemployment rate is based on a survey of households and economics have concord about range of the danger to the united states since the growth rate is declining in Europe and china therefore trade tensions frightening the united states manufacturing factors which more likely cause shout down of the economy and affected the job market.

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In the final three months of 2018 economy was seen its fastest growth rate since resection decades ago and the labor market by half a million people states that more Americans are willing to work and people are more likely to come back into a labor mark and look for a job and raising rates reduced due to the low inflation and decreasing in global growth(MS. Powell).

By looking at the overall unemployment of U.S it seems like the economy of the Unite States is strong and the growth rate has been rising and reducing the unemployment rates.

In a macroeconomic perspective, employment and unemployment are the two main concept in economic growth which mesuerd by GDP. Economic growth results from the employment and productivity growth. Increasing employment rate leads to higher rate of consumers spending and increase the money supply in the market place as a result improve the economy productivity level and increase demand for many companies, more purchase of American exports. In many countries’ employment follows short term GDP growth specially when fall in employment takes place, rather than long term trends.

According to the Investopedia federal reserve by increasing the money supply boost the economy, asset prise, prevent deflation and increasing its employments rate. Unemployment rate is highly related with supply(upward) and demand (downward) curve thus the unemployment’s acor when the market wage is above the equilibrium. Workers leving the labor force either because they are retierd or becom descoraged about finding a job by increasing the wage rate more people are willing to work as well as reduce the demand for workers being hired (Metcalf).

Okun’s rule of thumb states that inorder to reduce the unemployment rate economy has growabove its potential aoutput in fact 1% decline in unemployment rate cause GDP must grow 2 % faster potential growth rate to achive the 1% reduction unemployment rate( Investopedia). By expanding public sector employment a country can reduce its unemployment rate , create demand in other sector of economy such as private services. Receson in economy accours when the real GDP is lower than potention GDP where we have sicical staructral unemployment. If the economy goes to recession pushes price down in the long terman tit can cause the slow down of the economy.