The problem of unemployment is a crisis that has hit the entire world so hard especially in this twenty first century. One factor that is attributed to the unemployment situation that is witnessed in a majority of countries is the lack of significant growth in the industries that are in existence. The growth rate of the industries is much slower as compared to the rate of population growth across the world.
United States of America has also not been left out in the unemployment problem. According to the recent data that was collected by the bureau of statistics, it is clear that the rates of unemployment went up in January. The rates increased from 5.60 percent that was witnessed in December to a new figure of 5.70 that was witnessed in January 2015 (Bureau of Labor statistics). That figure is not so much different from the figures that have been recorded in the United States over the years. The bureau of statistics shows that on an average, the United States has had an average rate of unemployment of around 5.8 percent from the year 1948 to the present. The worst point to have been reached was way back in 1982 when the rates went up to an all time high of 10.80 percent. On the contrary, the lowest was achieved in the year 1953 when the rates were down at 2.50 percent.
Inflation refers to the overall increase in prices of goods and services within a specific economy. The rate of inflation is determined by taking a data analysis on the general price increases of goods and services in the economy. The rates have been fluctuating over the past few years with the highest rate recorded rate being 3.16 percent that was witnessed in 2011. The following year, the rate dropped to 2.07 percent, before further dropping in 2013 to a new level of 1.47 percent. The year 2014 saw the inflation rates rise to a new figure of 1.62. The data therefore shows that the increase in prices of products has been on a slight rise for the last five years. The figures for 2015 are not yet out but it is believed that by the end of the second moth, detailed reports will be made public.
The United States can be said to be in a recession since most of its citizens still remain unemployed, with figures indicating that close to three million people are still unemployed. Personal consumption of the citizens has since dropped from around -3.8 percent to 4.3 percent. The non-durable consumption patterns have also changed significantly from a – 7.1 percent change to a – 9.4 percent. Apart from that, the exports from America recently dropped from 23.6 percent to 28.7 percent, clearly showing how catastrophic the effect of the recession has been.
According to the United Bureau of economic analysis, the growth in the gdp increased slightly in the fourth quarter of the year 2014. During that last quarter, the rate increased by a margin of 2.6 percent. On an average, the gdp has been performing fairly at an average rate of 3.27 percent (Trading economies). The highest rate to have been ever recorded was in the year 1950 when the rate went up to 16.90 percent. The lowest rate was recorded in 1958 when the rates hit an all time low of -10 percent.
Bureau of Labor Statistics. Web. Http:// http://www.bls.gov/news.release/empsit.nr0.htm. Accessed 19 February, 2015
Trading Economies. Web. Http:// http://www.tradingeconomics.com/united-states/gdp-growth. Accessed 19 February, 2014
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