help on One, two , three, and four.
and the last one is an assumption
the data is based on the BEA and BLS stats https://www.bls.gov/ and https://www.bea.gov/
Okay we are ready to go: Let's assume that the natural rate of unemployment (or again, the levels of structural plus frictional unemployment) in the United States is 4.2%. Given this latter assumption, please discuss the following questions: First, based on the articles below and the data that you have collected and is available at the BEA and BLS, is the United States' economy currendy operating at "full employment"? That is. is the current unemployment rate above or below the natural rate of unemployment and. if above. what portion of the current U.S. unemployment rate is best characterized as "cyclical unemployment"? {Before you answer this. look at question no. 3 below.) Second. does the current U.S. 'top line" or "overall" unemployment rate underestimate or overestimate the "health" of the U.S. labor market? {That is, are current labor market conditions in the U.S. actually better or worse than reflected in the current \"overall" unemployment rate? (One hint: what happened to the labor forcetlabor force participation rate in April?) Third. and this is tied to question number one. what is the economic impact on the level of structural unemployment in the US. as a result of the federal government's increase of unemployment insurancetcompensation payments to $600 per week through July, 2020? Fourth. over the last few years information technology has lowered the cost of job matching through the use of online or web based employment postings, searches. recruitment and interviewing. How would or has {or rather. what is your thoughtstexpectations how) such technological change has impacted the U.S. natural unemployment rate over the last few years and why? Had these technological advancements occurred, do you think that the current US. unemployment rate would be higher or lower that it is? Third Part: Assume that the US, as a result of the impact of the coronavirus on the U.S. economy, the federal government is considering a federal law that prevents employers from terminating or laying off employees without "just cause" such as fraud or theft. That is, if there was an economic contraction or if the company wanted to produce different goods than before (and it did not "'need\" the employee) or if there was technological change that rendered the employee's skills redundant or not needed or the employer wanted to hire another (substitute) worker at a lower wage or salary, the employer would not be able to lay off the worker (or only upon a very high financial penalty). In short. once an employee is hired by a business, it is very difcult and costly to lay off that employee. This is called the \"just cause" standard that many European countries follow. Do you think that this would be a good proposal to reduce levels of unemployment? Why or why not? (Think through the impact of such legislation. What, if anything, would you expect to happen to the U.S. natural rate of unemployment and levels of structural unemployment, frictional unemployment and cyclical unemployment if this proposal became lainr'?)
