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Current event on macroeconomics - Article Example

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According to the article that was written by John Hood, North Calorina became the first state to end the extended benefits program that was focused at providing assistance to the individuals who have no jobs. On their part, the state legislature and the governor adopted the…
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Current event on macroeconomics
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Current event on macroeconomics

Download file to see previous pages... The article indicates that in 2013, North Carolina was the only state in US where the jobless were not provided with the extended benefits yet the state registered had one on the largest improvements in market performance as well as economic growth (John 16). US Bureau of Labor indicated that in the second half of 2013, the payroll jobs in North Carolina rose by 1.5% compared with 0.8% rise in jobs opportunities nationally. Similarly, the unemployment rate in the state dropped by 17% while the nationally it dropped by 12%. Despite the dropping labor force in North Carolina in 2013, it started to rise again in the first quarter of 2014. This article indicates that from June 2013 up to June 2014, North Carolina employment population ratio increased three times more than that of national average. Thus, it is an indication that by ending the extended benefits program, it led to job creation as well as job acceptance.
Notable macroeconomic concepts that are covered by the article include unemployment and extended benefits programs. Extended benefits entail the payments that are available to employees who have exhausted regular employment insurance benefits. During the periods of high unemployment, the states provides weeks of benefits, a vital economic strategy that aims increasing the consumers purchasing power as well as the aggregate demand. After passing the American Taxpayer Relief Act of 2012 and the signing by the President, the deadlines for the Emergency Unemployment Compensation were extended to December 2013. However, the act did not affect the number of weeks of benefits available under the Emergency Unemployment Compensation. According to the Department of labor, the federal government budgets reduction referred to as sequestration may affect the resident’s unemployment insurance benefits in the week ending October 6th. The government has directed the Department of labor to reduce by 7.2% the payments of individuals who are receiving the ...Download file to see next pagesRead More
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