The relationship between changing of labor force(total labor number ) and Unemployment rate - Research Paper Example

Download file to see previous pages The drop was sharp in 2002 heightened by the global financial crisis where most firms were laid off their staff. However, the situation was later on put under control (STOICA, pp.3-7).
Additionally, the study that was carried out in the same locality indicated that a decline in the population caused the number of employable persons to fall. It was that the number decreased by more than 13900 people. There were low rates of migration into the locality, low birth rates, high mortality rates and a great number of the aging population. The factors caused the total number of labor to decrease sharply (STOICA, pp.3-7).
However, the trend was slightly different in other localities where there was an increase in the labor force due to a population increase. More so, most of the people chose to reside in urban settlements where employment opportunities were more available than rural areas. Additionally, the demographic indicators within the area indicated population increase was as a result of increase birth rates, low mortality rates, increased population due rural to urban migration (STOICA, pp.4-5).
Shierholz, (paras.1-3)came up with a report that indicated there was a decrease in labor force participation between 2008 to 2012.The decline was about 2.5% from the previous years where the participation was 66.2%.Due to the decline, the rate of unemployment reduced significantly. A decrease in labor participation was caused by unwillingness by most of the people to seek for employment opportunities because of low wages that were being offered in the job market. However, he indicated that if industries provided lucrative job opportunities, there was a possibility for the market to be by prospect job seekers hence raising the rate of unemployment in an economy.
Plumer, (2013) showed that the labor force in the US was sharply weakening. According to his publication, about 66% of Americans had managed to secure a job vacancy or were still in the ...Download file to see next pagesRead More