Understanding Employment, Inflation And Gdp - 853 Words

Michael Tweddle Professor Clayman Macroeconomics 19 February 2016 Understanding Employment, Inflation and GDP In the months of June and July during the year 2011, the total number the total number of people employed declined by 155,000. Meaning that that many people either quit or lost their job. But, in that same year the unemployment rate happened to decrease. The Decline of such number was most likely due to the banking failure during 2008 all the way to 2011. This would cause a cyclical unemployment issue due to the market falling under. Causing the businesses no other choice than to let people go during this economic hardship due to not being able to keep up with their net income and net losses. With that happening, most economist and investors would expect none other than the unemployment rate to increase. Thus, that wasn’t such case. Instead the unemployment rate decreased during that period. This could have happened from two of many different possibilities. The first being the gradual decrease of the United States p opulation growth due to the baby boomer generation decreasing, causing the total population to decrease and causing a lower number of employees. The second choice being that of those 155,000 employees who were laid off, most didn’t try to look for new jobs and became what we call discouraged workers. With that happening, since economist don’t put discouraged worker in the workforce equation, the previous number of total workforce decreased. There areShow MoreRelatedThe Canadian Economy And Canadian s Quality Of Life1447 Words   |  6 Pageseffects of the manufacturing industry on gross domestic product (GDP), inflation and unemployment. Through analysis of the three subtopics, the reader will get a better understanding of how the manufacturing industry is â€Å"reacting† to these factors. There will also be information on the ties of inflation unemployment to GDP, because GDP gives an accurate picture of an economies health. 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