UNEMPLOYMENT RATE.

Come on now, get a job. In this activity, you will select a country and explore the concepts of unemployment and the phases of the business cycle as it relates to the economic well being of your selected country. Locate a recent article (published within the last year) that addresses the unemployment theory and unemployment rate of your selected country. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze your selected country's unemployment rate and how the key economic indicators align with the current phase of the business cycle. Include the following in your discussion. Identify how unemployment is calculated. Describe the different types of unemployment and state which type of unemployment you believe impacts your chosen country the greatest. State your selected country's unemployment rate. Discuss the four phases of the business cycle. Align the current phase of the business cycle with your selected country. Summar

RUNNING HEAD: UNEMPLOYMENT RATE
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Unemployment Rate
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Unemployment Rate
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Unemployment and Business Cycle in the United States
Unemployment is the situation in the economy when people are looking for job but didn’t
get it. When people do not have jobs they are not able to contribute or produce that impact on the
economy and the economy produce less (Pigou, 2013).
Unemployment Rate = Unemployed people / Total Labor Force *100
There type of unemployment are; natural unemployment is always presence in an
economy even in the strongest economy, frictional unemployment is for the short term till labor
force finds new jobs, structural unemployment is the biggest problem as it is arise when labor
skills are outdated and do not match with the demand of skills by the employer, at the last is
cyclical unemployment that caused due to the changing phase of the business cycle. The
unemployment rate in the United States has seen to be the lowest in nearly 50 years at 2.1% due
to expansion phase in business cycle. Trump’s trade war is the reason of this long term
expansion in the economy that is creating many job opportunities for the people (Smialek, 2019).
The business cycle consists of four stages that are expansion, contraction, peak and trough.
Expansion is the stage when economy is growing and increasing employment, contraction is the
stage where growth is slow, peak is the highest stage where business is producing at the best or
maximum output, and trough is the time of recession where economy is at its low (Gabisch &
Lorenz, 2013). Currently the United States is at the expansion stage from last10 years where
there is more employment opportunities and economic growth that is the reason behind the
lowest unemployment rate of the country.
.
Trough
Business Cycle in the United States
Peak
Output
(GDP)
Contraction
Expansion
Current Business
Phase in the
United States
Economy

Unemployment Rate
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References
Gabisch, G., & Lorenz, H. W. (2013). Business cycle theory. Germany: Springer Science.
Pigou, A. C. (2013). Theory of Unemployment. New York: Routledge.
Smialek, J. (2019, June 24). The Economy Is About to Hit a Record. Trump Says the Fed ‘Blew It’.
Retrieved from nytimes.com: https://www.nytimes.com/2019/06/24/business/trump-
federal-reserve.html