Unemployment Situation in United States in October 2012

Introduction

The aim of this essay is to discuss the unemployment situation in United States in October 2012. The unemployment rate is a statistical figure showing the level of unemployment in the country. The indicator can be calculated as a ratio of the number of people registered as job-seekers to the labor force. The unemployment rate calculated second way is always lower, because the size of the working age population is always larger than the size of the labor force (David, pp. 11).

The unemployment rate edged up in October in the United States after a sharp decline in September, according to the official report on employment released on November 2, 2012. However, the upturn was confirmed with a number of jobs created exceeded expectations. In October, the U.S. economy created 171,000 jobs, according to figures provided by the Department of Labor which now show a further increase of 84,000 jobs. The greatest increase in the hiring of workers last month occurred in professional services, health care, retail and hospitality and leisure sector. Most analysts had estimated that the unemployment rate would raise one or two tenths, and that the net job gain would be around 125,000 jobs. The faster employment growth has been reflected in the recent improvement in the attitude of consumers, whose spending accounts for almost 70% of U.S. economic activity. Last month the hourly wages of workers were 1.6% higher than a year earlier, the smallest annual increase since 2007 (State Unemployment Continues to Fall in October 2012, 2012).

The unemployment rate in the United States rose in October to 7.9% from 7.8% the previous month in line with analysts' expectations. In the month were created 171 thousand jobs compared to 125 thousand expected by the consensus.

Discussion and Analysis

The unemployment rate in the United States is calculated monthly by the Bureau of Labor Statistics. The data presented are seasonally adjusted and relate to the population aged 16 years or older. The U.S. unemployment rate rose slightly in October to 7.9%, according to the Labor Department, just four days before the presidential election. The rate rose 0.1% from September, when there was 7.8% unemployment. However, in October were created 171.000 new jobs, more than expected by experts. However, the Labor Department said the cyclone has had no noticeable effect on the unemployment data. In September, the number of jobs in the non-agricultural sector increased by 114 thousand, while in August grew by 142 thousand. This crisis began in 2007 when measures large mortgage houses like Freddie Mac and Fannie Mae will come under difficulties due to the global financial crises. From then on a cascade of failures flooded the financial market and then expands throughout society.

Currently, the U.S. is losing nearly 24,000 jobs per day, which terrorizes the population and increases distrust. According to statistics from the Department of Labor, the autonomous work has increased since employees work more hours. Given the global jobs crisis, many workers have seen an activity of the ...