How to Measure a Recession
Understand that unemployment is both a predictor and a consequence of a recession., Notice the monthly report on the average number of applications for unemployment insurance.
Step-by-Step Guide
-
Step 1: Understand that unemployment is both a predictor and a consequence of a recession.
Employers lay off workers as demand for products declines, and they are reluctant to re-hire until they are fully confident in the economy's return to stability.
Some economists feel that an unemployment rate of 4% is to be expected in the very best of economic times, so any increase in unemployment should be seen as a function of that 4% benchmark. -
Step 2: Notice the monthly report on the average number of applications for unemployment insurance.
Detailed Guide
Employers lay off workers as demand for products declines, and they are reluctant to re-hire until they are fully confident in the economy's return to stability.
Some economists feel that an unemployment rate of 4% is to be expected in the very best of economic times, so any increase in unemployment should be seen as a function of that 4% benchmark.
About the Author
Frank Lopez
Dedicated to helping readers learn new skills in creative arts and beyond.
Rate This Guide
How helpful was this guide? Click to rate: