The article discusses the rising unemployment rates amid fears of an economic recession, particularly due to the implications of Trump's trade wars. It emphasizes that unemployment is a lagging economic indicator and outlines various contributing factors, including government policies and weak labor protections. It also clarifies the goal of achieving maximum employment versus eliminating unemployment entirely, highlighting the challenges faced in matching available jobs with the skills of the unemployed. The Bureau of Labor Statistics regularly measures unemployment rates, which reflect these ongoing economic dynamics.
Unemployment is a lagging indicator of the health of the economy, meaning it takes time for it to show up after shocks to the country.
Government policies, weak labor protections, deregulation, and monopolies all contribute to rising unemployment.
Instead of seeking no unemployment, the government works toward something known as maximum employment, which contributes to long-term rising interest rates.
Unemployment tends to rise when the economy is struggling to produce enough jobs for the population, when companies close and leave thousands of people without jobs suddenly.
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