ANALYSIS OF UNEMPLOYMENT

Analysis and Comparison of Unemployment in Texas and New York

Abstract

The purpose of this paper is to enlighten and explore “unemployment” in a holistic context. The core objective of this paper is to accumulate the reliable data from the online sources and compare the “unemployment in New York” with “unemployment in Texas”. The research also analyzes many aspects of diverse factors that can influence “unemployment”. The study incorporates diverse statistical tools for the analysis, the comparison between New York and Texas would be executed by applying “one-sample t-test”. In addition, the study incorporates two other variables: “the inflation rate of the United States and the unemployment rate of the United States” in order to evaluate its impact on the “unemployment in New York” and “unemployment in Texas”.

Analysis and Comparison of Unemployment in Texas and New York

INTRODUCTION

Unemployment is often at its worst during times of economic crisis. In the United States, unemployment reached levels as high as twenty-five percent during the middle of the Great Depression in the 1930s. Historical data on unemployment can be difficult to compare, since the ways of measuring unemployment—and even the very definition of unemployment—have changed over the years (U.S Census Bureau, 2010). The U.S. Bureau of Labor Statistics (BLS) currently uses six different measurements of unemployment. In 2009, U3 unemployment for U.S citizens reached ten percent for the first time in twenty-six years (U.S Census Bureau, 2010).

The purpose of this paper is to enlighten and explore unemployment. The core objective of this study is to compare the inclination of unemployment between two significant regions of the United States; New York and Texas. The study variable or the dependant variable selected for this study is unemployment, and analysis of the study strives to measure the effect of diverse and independent variables on the study variable. The data for this study was accumulated from the reliable online sources; in addition, there were several statistical techniques applied to the data in order to reveal the reliable results (U.S Census Bureau, 2010). The primary analysis technique implied in this paper was “regression analysis”; moreover, the study incorporated several other techniques such as “one-sample t-test” in order to validate the results (Menard, 2002). The dependent variable of this study is “unemployment” and the independent variables of this study are “unemployment rate of the United States and inflation”.

Literature Review

The broadest measurement of unemployment in the United States is called “U6,” and includes both discouraged workers and the underemployed. Discouraged workers are those that have given up looking for a job due to a lack of available opportunities. Underemployed workers are those that would like to work full-time, but can only obtain a part-time position (U.S Census Bureau, 2010). The U6 measurement of unemployment is substantially higher than the U3 measurement—as of May 2011, it exceeds fifteen percent. Some statisticians maintain that even the U6 is an inaccurate figure, due to changes made during the 1990s that altered the way discouraged workers are ...