How to strengthen housing safety nets

U.S. homeowners and renters need stronger safety nets than existing social insurance programs provide to prevent housing insecurity during economic downturns, according to a new paper based on a study by Wharton real estate ...

Raising the minimum wage is a health issue, too

Congress just missed one of its best shots at improving health when the Senate failed to advance a bill that would have raised the minimum wage to US$15 an hour. Study after study has linked higher income to better health.

Study underscores need for stimulus support to vulnerable groups

Workers who are most vulnerable to pandemic layoffs are more likely people of color, underscoring the need for stimulus funding in order to keep racial inequality from growing, according to a new University of Michigan study.

High-income earners have sturdier safety net after job loss

In the spring of 2020, COVID-19 caused an estimated 22 million job losses (13% of the total workforce). Congress' new $900 billion pandemic relief package is the second largest in U.S. history, but it only extends federal ...

page 1 from 23

Unemployment

Unemployment occurs when a person is available to work and seeking work but currently without work. The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. The unemployment rate is also used in economic studies and economic indices such as the United States' Conference Board's Index of Leading Indicators as a measure of the state of the macroeconomics.

Most economic schools of thought agree that the cause of involuntary unemployment is that wages are above the market clearing rate. However, there are disagreements as to why this would be the case: the economists argue that in a downturn, wages stay high because they are naturally 'sticky', whilst others argue that minimum wages and union activity keep them high. Keynesian economics emphasizes unemployment resulting from insufficient effective demand for goods and services in the economy (cyclical unemployment). Others point to structural problems, inefficiencies, inherent in labour markets (structural unemployment). Classical or neoclassical economics tends to reject these explanations, and focuses more on rigidities imposed on the labor market from the outside, such as minimum wage laws, taxes, and other regulations that may discourage the hiring of workers (classical unemployment). Yet others see unemployment as largely due to voluntary choices by the unemployed (frictional unemployment). Alternatively, some blame unemployment on Globalisation. There is also disagreement on how exactly to measure unemployment. Different countries experience different levels of unemployment; traditionally, the USA experiences lower unemployment levels than countries in the European Union, although there is variant there, with countries like the UK and Denmark outperforming Italy and France and it also changes over time (e.g. the Great depression) throughout economic cycles.

This text uses material from Wikipedia, licensed under CC BY-SA