Demographic Breakdown of Unemployment and Non Labor Force Workers in the Nation

Demographic Breakdown of Unemployment and Non Labor Force Workers in the Nation

There are many different age brackets, genders, and ethnicity that make up unemployment in the labor force. Some of the same people who were once in the labor force also make up the workers who are not counted in the labor force anymore. Unemployment is important to the economy and the society that we live in because the more people without any jobs and/or not having a legitimate source of income will increase crime, poverty, political unsteadiness, downgrade health standards, and mental health problems. Unemployment can also cause underemployment which is not good for the economy. Underemployment, in one of its usage, is defined as the employment of workers with high skill levels (college degree or many years of experience) working low wage jobs that do not require any of their skills. Therefore, someone who is a doctor who could save many peoples lives is reduced to working at a fast food restaurant. That means that there is one less doctor in the economy that could be using their skills for a cause instead of having their skills go to waste. Even though all these things just stated are all dreadful things, there are some advantages from unemployment. Unemployment is one of the factors that keeps inflation from being high and/or accelerating. According to the Phillips curve, unemployment and inflation have an inverse relationship. Therefore, when inflation goes up, unemployment goes down and vice-versa. Also, the natural rate of unemployment theory or the Non Accelerating Inflation Rate of Unemployment (NAIRU) states when unemployment goes above the equilibrium, the inflationary expectations rise which causes inflation to accelerate; when unemployment goes below the equilibrium, the inflationary expectations fall which causes inflation to decelerate; when unemployment equals the equilibrium, the inflation rate tends to stay the unchanged unless something from outside the inflation system interferes with the inflation system. Labor productivity and profitability are enhanced by promoting unemployment.

In January of 2004, the Bureau of Labor Statistics (BLS) compiled data from January, 2001 to December, 2003 for displaced workers. The total number of workers who had lost their job was 11,421 consisting of people ranging from 20 years of age and over. 13.3 percent of these workers are not in the labor force and 20.3 percent are unemployed.

From 20 years of age to 24 years, there are 1,078 lost jobs. Out of 1,078, there are 644 men lost their jobs and 434 women. In the same age bracket, men have a 24.9 percent unemployment rate and 9.7 are not in the labor force. Women have a 19.8 percent unemployment rate and 18.7 percent are not in the labor force. Since for the women the non labor force participation rate is higher than the men, you could say that more women are going to school. Men though have a higher unemployment rate and a lower non labor force participation rate which could say that men 20 years of age to 24 years do not feel the need to go off to college as much as women so they go straight to work and/or because people are starting families at an earlier age so men are rushed into work.

8,688 workers lost jobs between the ages of 25 to 54. Out of 8,688, 5,038 are men and 3,650 are women. The same age group consists of 20.8 percent unemployment for men and 7 percent are not in the labor force. 15.8 percent not in the labor force and 18.6 unemployment rate for women. For men, there are less unemployment and non labor force participation than from ages 20 to 24 because of more knowledge, skills, and understanding of the job that they are doing and because more men are getting out of college around this time and are getting jobs. In the non labor force participation, there was a noticeable decrease that occurred. This could be a result of women getting more chances because of more education, experience and now being capable of handling the necessary tasks that the job requires that they could not at an earlier age.

Both genders from ages 55 to 64, 1,384 workers have lost their job. Also, the same age range has 22.5 percent unemployment rate and 20.1 percent not in the labor force. Men who age from 55 years to 64 years have a 19.8 unemployment rate and 19.6 are not in the labor force. 709 men of this age are workers who lost their job. Women have a 25.4 percent unemployment rate, 20.7 are not in the labor force and 674 have lost their jobs. Both men’s and women’s non labor force participation rate have increase significantly because more people are retiring early. People can retire early because of more ways to invest your money than before like stock market which a person can do themselves or a 401K plan which the company you work for offers you. Also because of better wages than your grandparents earned when they