Shootings in US schools are linked to increased unemployment

A rigorous Northwestern University study of a quarter-century of data has found that economic insecurity is related to the rate of gun violence at K-12 and postsecondary schools in the United States. When it becomes more ...

Analyzing employment trends through cell phone data

Policymakers now have another tool in their arsenal to help recognize and respond quickly to economic shocks. A new research study co-authored by Harvard Kennedy School Assistant Professor Daniel Shoag finds that call detail ...

Researchers use mobile phone data to predict employment shocks

Northeastern University computational social scientist David Lazer and his interdisciplinary research team have demonstrated that mobile phone data can be used to quickly and accurately detect, track, and predict changes ...

Recessions result in lower birth rates in the long run

While it is largely understood that birth rates plummet when unemployment rates soar, the long-term effects have never been clear. Now, new research from Princeton University's Woodrow Wilson School of Public and International ...

Obama announces $2.4 bln grant for electric vehicles

President Barack Obama Wednesday unveiled a 2.4-billion-dollar funding boost for the development of new generation electric vehicles and slammed critics of his economic rescue plans.

Unemployment rate for electrical engineers soars to new record

The unemployment rate for U.S. electrical and electronics engineers (EEs) hit a new record in the second quarter, while the rate for all engineers increased for a second straight quarter, according to data released last week ...

Germany's Infineon needs state guarantees: report

German chip maker Infineon is in negotiations with the government over state guarantees worth several hundred million euros (dollars), the Welt am Sonntag paper reported Sunday.

Vindictiveness doesn't pay

Vindictiveness doesn't pay. This has been demonstrated by a current study at Bonn and Maastricht Universities. According to this study, a person inclined to deal with inequity on a tit-for-tat basis tends to experience more ...

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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.

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