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  • Skaidrė: 1
  • The unemployment rate is essentially the number of unemployed individuals divided by the number of people in the labor force, multiplied by 100.
  • how do they determine how much people is unemployed in the labor force? is it just everyone who's not working?
  • Not everyone who is out of work is unemployed. In order to be counted as unemployed you have to be out of work, looking for work, and able to accept a job if one is offered to you. If you are out of work and not looking, then you are considered “not in the labor force” rather than unemployed.
  • Skaidrė: 2
  • Edward? wow good to see you, I actually just got laid of my job in a restaurant due to virus
  • James? Is that you I haven't seen you in a while how've you been?
  • sure, I guess I have time. I've also seen this "unemployment rate" pop up on the news a lot lately how is it calculated and what is it?
  • Skaidrė: 3
  • well when the unemployment rate gets too high it would mean that the economy is not using its resources efficiently especially during a pandemic, this is especially the case during the pandemic.
  • what happens when the unemployment rate gets too high?
  • Skaidrė: 4
  • This unemployment really came at the wrong time I don't know why everything in the store is rising in price now I can't even afford milk anymore
  • that's because of inflation, inflation affects your purchasing power as it decreases the amount of goods or services you would be able to purchase
  • Inflation is an increase in the general level of prices of products and services over a specified period of time annually.
  • inflation? what's that?
  • The two walk past a supermarket
  • Skaidrė: 5
  • So how is inflation measured?
  • well the consumer price index which calculates the market prices on a wide variety of consumer products is used to track and calculate inflation
  • exactly!
  • Skaidrė: 6
  • anyways I should probably head back to work now but one more tip before I leave. What we're experiencing right now is called a demand pull inflation it occurs when product and services prices are pulled up by consumer demand trying to buy less popular substitutes might be a good option to keep your grocery costs low
  • wow I never thought of that Thanks so much for all this information I'll definitely keep that in mind, I'll see you later take care!
  • Skaidrė: 0
  • sorry to hear that, unemployment rate has been spiking lately all because of this virus you wanna go on a walk and maybe have a talk?
  • I also heard that there are different types of unemployment?
  • Yea so there are 4 main types of unemployment, seasonal, structural, cyclical and frictional each represent different types of unemployment, in your case you would be an example of cyclical since you lost your job due to the pandemic which was a economic down turn in the business cycle
  • It can also lead to problems like increased cost in financial programs like employment insurance and also decreased tax revenue as people have less money to spend. When poverty rises crimes also rise leading to social unrest.
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