The Unemployment Rate as an Economic Indicator
Which group or agency manages the economic indicator data?
An economic indicator refers to statistics on economic activities within a certain state. Economic indicator paves ways for analysis of the microeconomic prediction as well as performance. In the US the Bureau of labor statistics is the agency that is responsible for giving the official report on the GDP macroeconomic statists as well as industrial statistics and personal income like unemployment rate reports. , government spending, and cooperate profits unemployment rate as a macroeconomic indicator is measured through the use of the monthly surveys, collected by Bureau of labor statistics.
How is the economic indicator calculated? Is it a formula ,do surveys need to be completed or does the raw data come from other independent sources?
Use of employment data to complement the unemployed statistics help to give a view on the current labor market state. Consequently there is a sampling of the civilian non institutional population that is selected randomly from the households. Since there are structured questions, the residents are allowed to determine the labor force. The number of unemployed figures from the respondents can, therefore, be used to generate statistics which could be interpreted as a measure of the labor force and an indicator of micro-economy. Don't use plagiarised sources.Get your custom essay just from $11/page
What has happened to macro economic over the past two years?
Considering what happened in the microeconomic over the last two years there was a fall in economic activities, based on the previous two-year statists over 13.9 billion Americans are unemployed. The higher rate of the unemployment rate has been associated with a fall in economic growth during the global financial crisis (Sinclair, 2009).
What is happening today with the macro indicator?
The government of US is working hard to ensure that they struggle to develop a policy that could boost the state’s economy to create more jobs for the unemployed persons. Indeed this has seen a decline in the unemployment rate .President Barack Obama started the effort by coming up with the economic stimulus package .Additionally Data from the past two years shows that unemployment has been a critical social problem in the US. This economic indicator has made the current government institute stringent policies and measures to reduce the unemployment rate as well as stabilizing USA economy (Montgomery et al,2016). The current government ensures s that there are decreasing taxes on the conducive business environment prompting investments Jobless people to get themselves involved in criminal activities.
What is your 12 moth prediction for the macro indicator? Will it go up or down?why ?explain the logic of your prediction?
Considering the state in the microeconomic indicators, precisely the rate of unemployment I predict that in the next 12 months the rate of unemployment will reduce. This is due to the fact that the current government has set new strategies aimed at reducing the rate of unemployment which could translate too many people getting jobs thus stabilizing the US economy(Sinclair, 2009).
Do you trust the macro indicator? It the data reliable or do you have a suspicion or hand evidence to show that the data is being manipulated?
The data obtained from the unemployment rate surveys in the US is trustworthy since it is collected from a sampled household who understand the macroeconomic activities of the US citizens. So it is a reliable source of the required data.
Why should management pay attention to the macro indicators? Is a good idea to do a formal review of key macroeconomic indicators or it is a waste of time?
Moreover there is a need to do a formal review of key microeconomic indicators since some of the signs might not be available in the state. For instance, the data provided on the unemployment rate could be different from the information presented in the personal income.
Attach current copies of a graph or chart representing g your macro-economic indicator to your homework
Figure 1Unemployment rate in US
Figure 2unemployment rate in US
Figure 3un employment rate in US
References
Montgomery, A. L., Zarnowitz, V., Tsay, R. S., & Tiao, G. C. (2016). Forecasting the US unemployment rate. Journal of the American Statistical Association, 93(442), 478-493.
Sinclair, T. M. (2009). The relationships between permanent and transitory movements in US output and the unemployment rate. Journal of Money, Credit and Banking, 41(2‐3), 529-542.