Economists say the rise of the unemployment rate can almost always be contributed to by a recession. Even as the economy rises and jobs are added to the economy the unemployment rate may still rise as well. This is due to the fact that the two numbers are generated from different surveys. The unemployment rate comes from a survey of households, whereas the payrolls data comes from a survey of businesses. Also, that payroll data is subject to dramatic revision. For example, the government’s initial reading of growth outside the farm sector in March found 58,000 new jobs, bu

At the heart of the unemployment problem is capitalism- it cannot do away with unemployment because it is a crisis-ridden system. Huge economic crises began in Britain in 1825 and followed on average every ten years. The cycle has continued in the twentieth century, marked by the extremely severe crisis in the 1930’s, although the periodicity of the recessions has varied since then

Gerard Jackson has a theory as to why a recession changes the unemployment rate so much. The failure to understand the forces that result in succeeding recessions being accompanied by higher levels of unemployment is due to the acceptance of two economic fallacies: treating money as neutral and capital as homogeneous. If money is neutral then that will only change output and the price level. Hence, change

Some topics in this essay:
Gerard Jackson, Unemployment Rate, Frederick Engels, unemployment rate, Army/Navy None, Link TOP’s, comes survey, capital homogeneous, money neutral, labor force,