Data Exercise 2

Running head: DATA EXERCISE 2 1
Data Exercise 2
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Date

DATA EXERCISE 2 2
1.What month (and year) is summarized? What was the unemployment rate for that
month? How does that rate compare with the rate in the previous month?
The employment situation in March is reported to have increased by more than 196000,
and the rate of unemployment rate remains unchanged at 3.8% as per the statistics released by
the U.S. Bureau of Labour. It is reported that labor gains were reported in sectors such as
healthcare and services involving professional and technical aspects.
2.What were the unemployment rates for adult women, teenagers, blacks, Hispanics, and
whites? How did these rates compare with those a month earlier?
The number of people unemployed remained stagnant approximated to be more than 6
million. The main worker segments that were unemployed entailed adult women who recorded a
3.3%, teenagers were the highest with 12.8%, blacks 6.7%, Hispanics 4.7% and whites at 3.7%.
The number of people classified as long-term unemployed remained unchanged; that is, they
were reported to be more than 1.3 million and represented 21% of the unemployed (Bureau of
Labor Statistics, 2019). Also, part-time employees commonly knowns as involuntary part-time
employees remained slightly unchanged and were reported to be 4.5 million individuals as of
March.
3.What factors make it difficult to determine the unemployment rate?
The process of measuring the unemployment rate entails identifying individuals who are
eligible and available to work. Based on demographic statistics, the total population of the US is
segmented into three distinct niches. The first group is composed of individuals under the age of
16 and others who are institutionalized (Tejvan, 2019). The other group is dubbed as not belong
in the labor force are adults who are categorized as individuals with the potential to work but due
to unavoidable circumstances such as school or social ties are unable to seek work. The last
group is the labor force and comprises individuals who are employed and unemployed but

DATA EXERCISE 2 3
actively finding employment opportunities. It is thus not an easy task to differentiate between
such three types and due to the certain changing thresholds determining frictional and structural
unemployment and also due to the evolving nature associated with such kind of unemployment.
It has also been confirmed that it is a challenge when it comes to establishing the rate of both
full-employment and unemployment (Simpson, 2019). A good illustration is when an individual
resigns from a job in the quest for a better one such a person will be considered to be under
frictional unemployment. However, when the previous post disappears due to a declining
industry that makes it hard to make money, such an individual will be considered under
structural unemployment. Considering a scenario where the economy slips into recession making
it difficult for a worker to find a job then such an individual will be categorized to be cyclically
unemployed.
4.Why is unemployment an economic problem?
Unemployment is an economic problem due to several implications it draws on the economy,
for instance, it adds up to social and economic costs such as loss of income, loss of government
revenue with regards to tax, social evils, and a decline in GDP. The higher the rate of
unemployment, the less the level of tax income collected as only a few individuals can pay the
income tax and also use less of their disposable income. The state is also compelled to spend
more of its resources on unemployment packages and other associated benefits (Simpson, 2019).
The government is not only forced to pay unemployment benefit but also a family that has been
affected by unemployment as it is probable that such a family will be entitled to housing benefit
and income boost (Tejvan, 2019).
5.What are the noneconomic effects of unemployment?

DATA EXERCISE 2 4
Unemployment has been associated with yielding personal demoralization which impacts
negatively on families. Unemployed individuals have lower standards of living, and this may be
related to relationship breakdowns evidenced in most cases as instances of unhappiness erodes
family ties. The rise of crimes is also associated with increases in levels of unemployment
compounding communities with much fear.
6.Who loses from unemployment?
A high rate of unemployment translates to a reduced level of investment and business
operations which means less revenue for the government with regards to tax income. People and
communities suffering from unemployment are characterized by dilapidated houses and
devaluing of their property values. Families and people also suffer due to broken relationships
that result from unemployment.
7.Significance of the data
The survey entails statistics collected from two months. The household survey requires
evaluating labor force status with regards to unemployment based on demographic features
(Bureau of Labor Statistics, 2019). On the other hand, the establishment survey assesses nonfarm
unemployment, income based on different industries and hours of work. High unemployment
rates are also an indicator that the country’s economy is operating below the optimal capacity
thus being inefficient and this translates to lower output and level of incomes. The unemployed
are adversely affected such that they are unable to purchase the required level of commodities
needed to boost the economy leading to lower spending and output. Unemployment on the rise is
associated with a negative multiplier impact.