A country’s unemployment rate is a key economic indicator that gets a lot of media attention, especially during recessions and challenging times. This is because unemployment adversely impacts families by reducing their disposable income, lowers employee morale, and reduces the overall economy’s output. Therefore, it is important that policymakers have access to accurate and timely unemployment statistics that can help them make the best decisions about steering and countering unemployment.
Unemployment is measured by counting the number of people without jobs who are available for work and actively looking for employment. This figure is a lagging indicator, and it rises or falls in response to changes in the economic climate. Economic fluctuations can cause cyclical unemployment, where businesses lay off workers during periods of economic slowdown or recession. On the other hand, economic expansion can lead to new hiring, as businesses look for workers to meet demand.
Many modern economists view full employment as the optimal economic goal, but it is difficult and even undesirable to achieve in reality. Therefore, they set more pragmatic goals for the labor market. For example, many economists believe that an unemployment rate of about 5% is desirable to avoid inflation while allowing people to move between jobs, attend school, or improve their skills.
It is normal for a person to experience some stress at work from time to time, but when the stress level becomes excessive and continues to occur on a consistent basis, then it could be a sign that you have an unhealthy job. Identifying these signs is an essential step towards improving your work life and finding a healthier alternative.
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