Unemployment

Unemployment The economic concept involving unemployment is quite simple. When an economy is growing and is in an expansion, unemployment is usually falling; when an economy is in a recession, unemployment is usually raising, although often in a lag (Colander 140). Unfortunately, due to the events of September 11th, there was no lag. The Labor Department's November job report showed that businesses lopped off another 331,000 workers from their payrolls last month, after shedding 468,000 in October. Losses …

…but we should expect to see in the near future the frictional activity begin to play a major role in our recovery. Furthermore, businesses will continue to restructure creating even more structural unemployment. But there is hope when the Federal Reserve fretted about continuing economic weakness and cut short-term interest rates for the eleventh time this year to 1.75%, the lowest nominal level since 1961, the talk on Wall Street was whether the turnaround had already started.