There is no need to deny the fact that the economy of a state is one of the most vital factors that guarantee its existence and further development of the country. As a factor influencing the functioning of every state, the economy deals with a great number of various phenomena that are considered the part of the modern world. Due to this fact, the discussed issue is often regarded as a very complicated one.
However, it is necessary to emphasize that the consideration of a great number of various key points at the same time is the guaranty of the efficient and prosperous economy of the state. That is why it is vital for economists to be able to switch between the analysis of various notions, such as unemployment, demand, supply, market, and GDP, in order to catch the slightest change in their status and create an efficient response to new challenges.
Based on the assumptions made above, it can be said that the analysis of some of the key aspects of the economy explored in the relevant economic article can help to understand the issue better. The article U.S. Economy Adds 223,000 Jobs; Unemployment at 5.3% by Nelson Schwartz (2015) sheds light on some very important tendencies in the economy of the U.S.
Thus, speaking about the state of economy of the USA, the author outlines several factors the combination of which could have a great impact on the state. Several key points investigated by the author can be outlined in the article. The first point is related to the fact that the economy of the USA managed to add “healthy 223,000 jobs” last month, that means that it continues to grow and recover from the aftermath of the crisis (Schwartz, 2015, par. 2).
The second point is the analysis of the relation between the unemployment rate and the improvement of the economy and the creation of new working places. The third one is the ability to overcome inflation, which could have a beneficial effect on the economy of the state. Finally, the author admits that the current conditions of the American economy are better than the conditions of a great number of advanced economies.
Thus, analyzing these key points of the article mentioned above, it is possible to use the concept of unemployment in order to make a certain conclusion. It should be said that by speaking about the creation of new working places, the author obviously wants to underline the great importance of the unemployment rate and the impact it has on the economy of the state.
Thus, underlining the possibility of overcoming inflation and the current state of the economy of the USA, Schwartz (2015) could not but emphasize the progress in the employment rates, which is one of the major factors influencing the economic power of the state.
Additionally, the author’s statement about the decrease in the unemployment rates shows that the analysis presented in the article is based on this important issue. In other words, it is possible to say that the indexes of the unemployment rate can be regarded as the identifier that shows the state of the whole economy. That is why the direct correlation between the main key points outlined by the author and the concept of unemployment can be observed.
Besides, it is also obvious that the concept of unemployment has a great impact on the economy of the state and its recovery. Unemployment could affect the economy of the U.S. greatly, as it is one of the most important factors influencing the economic stability of the state. Because of the relatively low unemployment rate in the U.S., the country has managed to cope with the severe financial crisis in a short period. The low rates of unemployment lead to the rise of the spending power of the population, which results in a growing demand for local services (Layard, Nickell, & Jackman, 2005).
Besides, a positive GDP gap is considered another significant consequence of low unemployment, which means that the healthy labor market is vital for ensuring the effective functioning of the national economy (Tucker, 2014). The rise in tax revenues and lower spending on welfare payments for unemployed people prevent the budget deficit and are considered other positive consequences of low unemployment rates. Therefore, the low rates of unemployment in the U.S. can be considered one of the major factors affecting the economy of the U.S. positively and contributing to the stable economic power of the country.
I agree with the economic article written by Nelson Schwartz, as it demonstrates that the unemployment rate is one of the most important factors influencing the U.S. economy. Besides, I agree with the author’s statements about the importance of considering other factors reflecting the effectiveness of the labor market, as declining unemployment rates do not necessarily coincide with growing hourly earnings of the nation’s workforce.
I also support the author’s view on the efficacy of American economy if compared to other advanced economies, as, in spite of the severe economic crisis the country has experienced, it has managed to maintain the unemployment rates that are significantly lower than the rates in many well-developed countries across the globe.
References
Layard, R., Nickell, S., & Jackman, R. (2005). Unemployment: Macroeconomic performance and the labor market. New York: Oxford University Press Inc.
Schwartz, N. (2015). U. S. economy adds 223,000 Jobs; Unemployment at 5.3%. Web.
Tucker, I. (2014). Macroeconomics for today (8th ed). Mason, Ohio: South-Western Cengage Learning.