Unemployment is measured by the U.S. census Bureau through a method of surveying. The bureau surveys approximately 60,000 households each month to determine how ma

The first step in analyzing the effects of unemployment on the economy is by looking at how much the unemployment rate has risen over the past few years. According to the article from the Christian Science monitor “Employment growth at the moment is the lowest for any recovery since the government started keeping such statistics in 1939” (csmonitor). From another article the imail “unemployment rate hits 8-year high”, the national unemployment rate has risen to 6.1 percent while the official number of unemployed U.S. workers is now 8.8 million as of September 2003. The article also states that an additional an additional 48,000 jobs have3 been lost during the month May 2003. Conversely the latest report on unemployment released on October 3rd 2003, states that for the month of September, the unemployment rate held steady at 6.1% for the first time in 8 months. Due to this, 57,00jobs outside the farm sector were created (CNNMoney). In addition to this general trend of increasing unemployment rates, the duration of unemployment also seems to be on a steady incline. Of the 8.8 million unemployed Americans mentioned earlier, 2 million of that number have been out of work for 27 weeks or longer (CNNMoney), as opposed to the average duration of unemployment which is 19.6 weeks- a 20 year high (Imail). The combination of the increase in unemployment rate and duration of unemployment will ultimately affect the income and purchasing power of workers and consumer.

During this jobless recovery, it could be said that the economy is going through a phase and experiencing a period of cyclical unemployment, and in order to attain success and reduce the unemployment rate, the economy is going to have to depend on its structural and cyclical forces to boost up and this will create more jobs and boost consumer spending and encourage business investment. If the labor-market is not decreasing in unemployment this has a ne

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