If one goes as per the estimates & talks of the government officials then the economy is on the path of recovery. But, the sentiments among the citizenry are opposite to talks of officials. Professionals are not feeling good about their job prospects & youth have the fear and difficulty of finding one. This is the situation among all major advanced economies in the world – US, UK, Germany & France. Today we will discuss the biggest problem of Unemployment & Labor force.
Correct measure of Unemployment
In March, According to US Labor Department, the unemployment rate fell to 4.5%. But this is not the complete picture. This rate is based on the U3 measure. which includes the individual as unemployed in a limited version. A person is termed as unemployed if he is not having a job & is looking for one. i.e. he is in labor force but unemployed. These unemployed people will receive unemployment benefits. In the US, unemployment benefits run for 6 months where as there is no cap in the UK. Unemployment benefits in UK, can run for a decade or even for a lifetime.