Sample English Annotated Bibliography on Unemployment Rate in the US

Unemployment Rate in the US

One of the most fundamental economic indicators in the contemporary world is the unemployment rate. In the US, the official unemployment statistics are determined through the Current Population Survey (CPS), which is carried out by the Census Bureau. The US has not had a full employment for at least a decade, although economic analysts are anticipating that a full employment would be attained very soon. However, external environment has played a significant role, making domestic industries experience a fall in production. Sometimes, a certain level of unemployment is appropriate to the country’s economy to maintain a given level of inflation. Although the US has experienced a decline in unemployment rate for some time, the rate is too slow to have an impact in job creation.

United States Unemployment Rate: 1948-2015.” Trading Economics (2015). Web. 10 June 2015. http://www.tradingeconomics.com/united-states/unemployment-rate

According to the Trading Economics, unemployment rate is a measure that considers the number of people who are actively searching for a job in relation to the total number of labor force. The US unemployment rate in May 2015 stood at 5.5%, which is an increase from 5.4% in April. The average unemployment rate stands at 5.83% since 1948. The highest unemployment rate ever to be recorded since 1948 was 10.8% in November 1982 while the lowest rate to be recorded in the same period was 2.5% in May 1953. In May 2015, the number of people who were unemployed in the US was 8.7 million, but this was slightly higher than April’s record, which stood at 8.5 million. The number of people who are employed as part-time, or involuntary part-time workers, remained at 6.7 million while 1.9 million people were at having at least something to contribute to the labor force.

Choi, Sangyup, and Prakash Loungani. Uncertainty and Unemployment. Washington: International Monetary Fund, 2015. Internet resource.

This study focuses on the uncertainty in the US labor market. An aggregate uncertainty shock is bad for an economy because it creates a short-term rise in the unemployment rate.  A sectoral uncertainty shock, which results from the cross-industry volatility, is utilized to explain the long-term unemployment rate. A sharp increase in the level of unemployment in the US from 2007 has raised the debate on the factors that contribute to high unemployment rates. In 2014, the unemployment rate remained at 2%, which was quite higher than 0.7% rate that was recorded in 2007. Uncertainty shocks have significant effects on the evolution of unemployment rate as they interfere with labor adjustment costs. However, variations in labor markets may minimize the effects created by uncertainties.

Sherman, Eleni Theodossiou, and Janie-Lynn Kang. “Continued Improvement in U.S. Labor Market in 2014.” Monthly Labor Review (2015): 1-34. Business Source Complete. Web. 10 June 2015.

This study emphasizes that the rate of unemployment in the US has declined in 2014 by 1.9 million people. The national unemployment rate just before the onset of global recession was 4.7%, but it rose to 9.9% by the fourth quarter of 2009. According to the CPS, the labor market has shown a considerable improvement in various demographic groups, which include people with disabilities, and foreign-born citizens. The 2014 figures have portrayed a fall in the unemployment rate in all core demographic groups, as well as all levels of education achievement. Despite the decline, individuals who have not attained a high school diploma continued to face hardship three times more than individuals holding bachelor’s degree. Although the number of individuals in long-term unemployment condition has continued to decline, their share among the total unemployed is still high as compared to the period after the Great Recession.

Li, Ziran, et al. “An Empirical Analysis Of The Relationship Between Chinese RMB Fluctuation And Overall Unemployment Rates In US.” Review Of Pacific Basin Financial Markets & Policies 16.1 (2013): -1. Business Source Complete. Web. 10 June 2015.

This article explains how China has contributed in the rising unemployment among the US citizens. After the global economic crisis, many theories emerged as to how China has managed to expand its foreign exchange while the US’s struggle for recovery persisted. However, the fluctuation of Chinese currency has an effect on the US’s employment rate. Undervaluing the Chinese currency has created trade deficit in the US by causing a decline in the manufacturing sector that employ numerous American citizens. Most economists argued that a rising trade deficit creates unequal distribution of employment. A revaluation of Chinese currency benefits countries that offer cheap labor, hence, affecting American jobs. Currency depreciation encourages domestic production due to high demand of domestic goods. Thus, the US citizens will continue to experience high unemployment as long as China continues to devalue its currency.

Coibion, Olivier, Yuriy Gorodnichenko, and Dmitri Koustas. “Amerisclerosis? The Puzzle Of Rising U.S. Unemployment Persistence.” Brookings Papers on Economic Activity (2013): 1-82. Business Source Complete. Web. 10 June 2015.

 This article asserts that the US unemployment has gone up after every recession, raising the concern of what would happen if the US were hit by a recession in the future. The monetary policy and fiscal policy may have played a role in creating persistent unemployment, but turning to other factors that evolved in the  1980s, long-term unemployment rates have resulted from declining labor mobility, in addition to change in age structure. When the US’s level of unemployment declined between 1979 and 1983, West European countries encountered a rise in unemployment, but this did not encourage job growth, as West European countries began to experience a decline in unemployment rates in 1987. The recovery from Great Recession in the US jobs depicted a slow growth in the early 1980s. Changing policy responses in handling business cycles have also contributed in rising unemployment rate, particularly the contractionary monetary policy.

Worstall, Tim. “223,000 New Jobs In April, Jobless Rate Down To 5.4%; When’s The Fed Going To Raise?” Forbes. Economic and Finance, May 8, 2015. Web. 10 June 2015. http://www.forbes.com/sites/timworstall/2015/05/08/223000-new-jobs-in-april-jobless-rate-down-to-5-4-whens-the-fed-gonna-raise/

This article has focused on the fall in the unemployment rate in the US, based on April’s statistics. According to this article, 223,000 new jobs were generated in April 2014, making the unemployment rate fall to 5.4%. These figures were against what many economists had anticipated given that the Labor Department indicated weak economic data. The Fed has predicted that the country’s economy will attain full employment very soon, and has already indicated a rise in interest rate. Nonfarm payrolls have shown a growth in April, but federal government added just 85,000 jobs in the month of March. The US citizens do not like inflation; neither do they like involuntary unemployment. However, lack of unemployment is likely to spark off inflation. Some economists prefer a certain level of unemployment (ranging between 5and 5.5%) to maintain Non-Accelerating Inflation Rate of Unemployment (NAIRU). Such employment rate is perceived as appropriate for the country’s economic growth.

Works Cited

“United States Unemployment Rate: 1948-2015.” Trading Economics (2015). Web. 10 June 2015. http://www.tradingeconomics.com/united-states/unemployment-rate

Choi, Sangyup, and Prakash Loungani. Uncertainty and Unemployment. Washington: International Monetary Fund, 2015. Internet resource.

Coibion, Olivier, Yuriy Gorodnichenko, and Dmitri Koustas. “Amerisclerosis? The Puzzle Of Rising U.S. Unemployment Persistence.” Brookings Papers on Economic Activity (2013): 1-82. Business Source Complete. Web. 10 June 2015.

Li, Ziran, et al. “An Empirical Analysis Of The Relationship Between Chinese RMB Fluctuation And Overall Unemployment Rates In US.” Review Of Pacific Basin Financial Markets & Policies 16.1 (2013): -1. Business Source Complete. Web. 10 June 2015.

Sherman, Eleni Theodossiou, and Janie-Lynn Kang. “Continued Improvement In U.S. Labor Market In 2014.” Monthly Labor Review (2015): 1-34. Business Source Complete. Web. 10 June 2015.

Worstall, Tim. “223,000 New Jobs In April, Jobless Rate Down To 5.4%; When’s The Fed Going To Raise?” Forbes. Economic and Finance, May 8, 2015. Web. 10 June 2015. http://www.forbes.com/sites/timworstall/2015/05/08/223000-new-jobs-in-april-jobless-rate-down-to-5-4-whens-the-fed-gonna-raise/