Unemployment rate is a widely used measure of the health of a country’s job market. It is calculated by comparing the number of people without jobs to the total population. The Bureau of Labor Statistics (BLS) uses a monthly survey to identify the civilian labor force, which excludes retirees and those who are not actively looking for work. The official unemployment rate is defined as U-1 – individuals who have been unemployed for 15 weeks or longer; U-2 – those who lost their jobs and completed temporary employment; and the U-4 rate, which includes discouraged workers (those who have given up searching for jobs). The BLS also collects data on underemployment, which is defined as the U-3 plus discouraged workers and marginally attached workers, plus those working part time because they want full-time jobs but can’t find them.
The causes of unemployment are complex and vary between countries. In general, economic fluctuations can cause unemployment to rise and fall. When the economy enters a recession, businesses are often forced to cut costs by laying off employees or freezing hiring. In addition, economic slowdowns can reduce consumer spending, which in turn can lead to a reduction in production and more layoffs.
In addition, technological advances can result in the loss of jobs. For example, when web-based advertising replaced traditional newspaper ads, many journalists and other newspaper workers were laid off. Long-term unemployment can also cause a variety of mental and physical problems, including depression, anxiety, poor nutrition, increased smoking, low self-esteem, and poor physical health.