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Macroeconmics - Essay Example

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unemployment that came out in the first week of December this year. These numbers show that US unemployment rate has gone down a little. In the paper, the article will be summarized and the overall economic…
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Macroeconmics
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Download file to see previous pages The article also interprets the new data regarding unemployment in United States. It explains that the important factors in lower unemployment rates are reduction in participation rate and the performance of the private sector. The article also discusses how government officials are trying to settle on the budget crisis and informs the audience regarding the potential harmful consequences if any settlement is not reached.
It is also discussed that although unemployment is decreasing, new jobs are not adding in the economy as they were 2 months ago. This shows that there is a decreasing trend in the increasing jobs in the economy. The decreasing trend depicts how budget crisis is negatively affecting the economy and especially the job market. Public companies are not hiring employees because they are unsure as to what will happen in the coming few months. The budget crisis therefore is significantly affecting the economy.
Another indication of the importance of the unemployment data can be seen by the performance of stock markets. Usually good news such as decrease in unemployment has a positive effect on the stock markets and investors start to invest in the markets. This did not happen as the markets did not react well to the news. The market reacted in a good way for sometime but this positive reaction was not long lasting which shows that people still have reservations regarding the state of the economy. Stock market performance is an important indicator as to how people perceive the new information and in this case it shows that the news can be regarded as a mixed report.
The article also discusses that the new unemployment data reveals that the economy is recovering but the whole process is very slow. The new jobs were added because private companies increased their hiring but government hiring is still in the negative. This again indicates the overall picture of the economy. The article ...Download file to see next pagesRead More
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