Labor Force from the Household Survey Essay Example | Topics and Well Written Essays - 500 words

Labor Force from the Household Survey - Essay ExampleU6 reflects the rate that includes persons marginally attached to the labor force and those who are occupied part-time for economic reasons in generating the unemployment rate. Discouraged workers form part of the marginally attached workers. According to the authors, the main reason for the continuing stagnant growth of the U.S. economic system lies in the ongoing and scarcely improving shortfall in aggregate demand relative to the supply of productive resources. (Bivens, Fieldhouse & Shierholz 2013) Consumption of mystifyd goods and services have change magnitude since the onset of the Great Recession in 2008.2. The authors discuss the issue of the relationship between strong gross domestic product growth and a strong recovery. What does their argument imply about the relationship between strong GDP growth, the deficit and reducing unemployment? The authors argument suggests that budget deficit reduction results to decelerat ed GDP, which, in turn, translates to higher unemployment and underemployment rates. The austerity measures enforced to reduce budget deficits lead to less economic activities, fewer jobs, less production of goods and services, less demand from the consumers, and, ultimately to a lower GDP. Lower GDP requires less labor. More and more plants and factories will operate below their full capacity and will lay off more workers to cut costs and pop off the economically difficult times. According to the authors, achieving full employment will bring in economic recovery. Full employment can be attained by boosting the consumers demand for goods and services produced by the country as the initial step toward narrowing the output gap the difference between what the economy can produce and its actual output.