MacroEconomics

Writing Assignment #1: Employment Situation

Write a brief 2 page (single spaced) informal report describing the current employment situation. You will want to rely heavily on the data from the Household Survey and Establishment Survey that came out last month (link below).

Please note that this is in the form of an informal report. The report will have three main parts: introduction, discussion sections, and conclusion. The report should also include such formatting elements such as headings, bulleted or numbered lists, graphs and charts or tables. You are expected to utilize proper grammar and spelling. The document must be single-spaced, written using 12 point Times New Roman font, and be formatted with one-inch margins. Instructions are posted on the assignment page in Blackboard. Comment by Roberson, Robin R.: You need to add something about proper grammar and spelling, and choose a font type/size and margins for them to use. It helps solidify the requirements for the formatting criterion. It also clarifies that while this is an “informal” report, it still has standards that need to be met. Comment by Roberson, Robin R.: Are the instructions on Bb different from the ones given here? If not you might want to insert ”also” between “are posted”.

You will want to visit the Bureau of Labor Statistics website for the release of the Household Survey and the Establishment Survey: http://www.bls.gov/news.release/empsit.toc.htm. In particular you will want to look at Tables A and B. Table A-15 provides useful information on alternative measure of the unemployment such as the one that takes into account discouraged workers. You should also look at news stories and blogs about the releaseIncorporate at least two additional relevant news sources into your report. Make sure to site your additional resources. Comment by Roberson, Robin R.: Is this econ lingo or does it just need to be fixed? Comment by Roberson, Robin R.: The first sentence is a suggestion. The second is a requirement that assumes the first sentence is a requirement. I suggest changing “should also look at” to “will also use”.

Your answer should be consistent with the intuition in the models from the course. However, you should never draw a loanable funds model, an aggregate production function, etc. In other words, avoid economic jargon. You are not explaining the information to an economist.

Issues you should address:

1. What happened to the standard measure of the unemployment rate (the U-3 measure)? What does that say about the current state of the economy?

2. Does the standard unemployment series convey an accurate picture of the labor market? If not then, what other factors should you look at? Explain. You may want to consider the average duration of unemployment, the broader measures such as U-6 which takes into account “discouraged workers,” the labor force participation rate or the employment-population ratio. Make sure you explain the rationale for looking at these broader measures.

3. What happened to non-farm employment? What does this say about the current state of the economy?

In the conclusion, you should comment on the current state and future of the U.S. economy based upon the data analyzed.

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