The article “ Bloomberg: Unemployment is as low as it gets ” authored by Mark Whitehouse outlines unemployment which is one of the major problems experienced globally thus raising significant concern to the government. Also, unemployment in the United States is becoming an important indicator factor as the supply of workers is getting tighter and the Fed needs it low to enable a little more inflation which must automatically be a problem.
In line with the article, unemployment in the United States of America has reduced drastically to 3.8 percent due to records of hire which is the lowest level ever attained since April 2000 as opposed to the Economists at the Federal Reserve who thinks it should vary between 4.2 percent and 4.8 percent. Unemployment is, however, necessary in the economy to avoid inflationary spiral where an increase in wage leads to a corresponding increase in price since demand will be way too much than the supply of workers.
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The 3.8 percent unemployment rate analysis may not be true as many people seeking for a job during and after the period were not included in the unemployment list of the count. This has assisted much in lowering pressure on wage hence attaining the required demand as most of them reentered the labour force which rose by 1.2 percent from April 2015 to May 2015 increasing supply of workers by 2.4 million.
One of the recommendations on unemployment is providing retraining schemes to enable occupational mobility of labour to avoid unemployment due to technology, problems of mobility and changes in the structure of demand. Others include improving vocational counselling and helping in fundraising of self-employment projects or business which enables most individuals to stay employed and create employment to others. Unique employment assistance to the teenagers is also recommended to curb unemployment.
Reference
Whitehouse Mark. (2018). Unemployment Is About as Low as It Gets . Judging from the jobs data, it looks as if it’s nearing the limit.
https://www.bloomberg.com/view/articles/2018-06-01/u-s-unemployment-rate-is-about-as-low-as-it-gets
