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Part 1: The Unemployment Rate

 

Complete the following exercise

 

Visit the Bureau of Labor Statistics Web Site,

 

www.bls.gov/news.release/empsit.toc.htm . Select Employment Situation Summary.

 

Write a report (1-2 pages double - spaced) to answer the questions:

1.What month (and year) is summarized? What was the unemployment rate for that month? How does that rate compare with the rate in the previous month?

2.What were the unemployment rates for adult women, teenagers, blacks, Hispanics, and whites? How did these rates compare with those a month earlier?

3.What factors make it difficult to determine the unemployment rate?

4.Why is unemployment an economic problem?

1.What are the noneconomic effects of unemployment?

2.Who loses from unemployment?

 

Part 2: The Inflation Rate

 

Complete the following exercise:

Visit the Bureau of Labor Statistics Web Site,

 

www.bls.gov/news.release/cpi.toc.htm . Select Consumer Price Index Summary.

 

Write a report (1-2 pages double - spaced) to answer the questions:

1.What month (and year) is summarized? What was CPI-U for that month?

2. What was the rate of inflation (percentage change in the CPI-U) for the month? How does that rate of inflation compare with the rate in the previous month?

3.Which two categories of goods or services had the greatest price increase for the month?

4.Which two categories of goods or services had the lowest price increase (or greatest price decrease) for the month?

5.Who loses from inflation?

 

Part 3: Unemployment Data by Labor Force Groups and Duration

 

Go to http://www.gpoaccess.gov/eop/ -

the home page of the Economic Report of the President. Click on the link to the most recent report.

 

a. Find unemployment data (Table B-12.-Civilian unemployment rate) for the following four years 1995, 2000, 2005, and the last available year. Use four labor force groups: males, and females, in each case 16 to 19 years of age, versus 20 years of age or over. Present the result in your project as a table.

 

b. Use the Economic Report of the President (Table B-13.-Unemployment by duration and reason) to find data on the duration of unemployment in 1995, 2000, 2005, and the last available year. Present the result in your project as a table.

 

Write a report (1-2 pages double-spaced) about the results you received.

 

In this paper consider, but do not be limited to the following:

•Compare the distribution of unemployment by duration over these years. What relationship, if any, do you find?

•Starting in the early 1990s many U.S. firms downsized their operations. In your opinion, how did this affect the duration of unemployment?

•Demographic studies show that the proportion of teenagers and minorities in the U.S. population is likely to increase in the near future. In your opinion, what implications, if any, will this trend have on the natural rate of unemployment?

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