The Recovery’s Two Sides: Weak Growth Even as Hiring Surges
The article points out the mismatch between the Economic growth rate and the Unemployment rate in US economy. While the unemployment rate has reduced in the past year, the corresponding high rate of decline is not matching with the Economic growth rate. The reason for the mismatch is mainly Underemployment, and decline in productivity.
Topics include Underemployment, causes and consequences of Unemployment, how unemployment figures are imperfect measure of macroeconomic reality and Productive Efficiency. Explain using the Labor market and National output diagrams.
Evaluation will cover Government Intervention to tackle underemployment, effectiveness of supply-side policies to prevent downward spiral towards recession, impact on the Consumers, Producers and Society in short term and long term.