1. The graphic includes the Local Area Unemployment Statistics (LAUS) program, which is a federal-statewide cooperative effort in which all states report monthly estimates of total employment and unemployment in the United States. The LAUS county data are estimated using a BLS prescribed multi-step estimation process, which gathers a variety of different information from local areas around the state. The estimates of the state’s employment/unemployment are adjusted so that all areas add to the state-wide total. The data in the graphic reflects on the county where the person lives.
The reason why I chose this article is because according to the San Diego County’s data, the unemployment rate was 3.3 percent in October 2018, which is an increase from the 3.2 percent in September 2018. The California’s Employment Development Department (EDD), shows that some companies may simply be unable to fill jobs because qualified workers don’t want to move to San Diego with its tight housing market and lower wages than might be available elsewhere. The unemployment rate for California was 4.0 percent statewide in 2018, and 3.5 percent for the entire United States. The total jobs in construction, financial services (particularly insurance carriers), administrative support and health care employment decreased by roughly 2500 jobs. While on the other hand, there was increases in transportation, manufacturing, tourism and government employment, according to EDD data.
This article relates to chapter 7 on Unemployment (“The natural rate of unemployment”, pg. 224) When unemployment rates are less than their natural rate, this can be an indication of an economy expanding beyond their capabilities. After the Gross Domestic Product, the unemployment rate is the second most important indicator of an economy. People pay attention to the unemployment rate because it can affect them personally, but Economists monitor the unemployment rate as an important macroeconomic indicator. They use the unemployment rate to assess the position of the economy relative to the business cycle.