How is the unemployment rate affecting the economy?
The unemployment rate, when high, is detrimental to the growth and stability of the U.S. economy. As of 2010, consumer spending drives over 75% of the economy. When people are unemployed in large numbers, the economy is negatively affected.HistoryThe unemployment rate is typically between 3% and 5% of the U.S. population. As of April 2010, the unemployment rate is approximately 10%, which impedes economic growth.State Budget ImpactAs of April 2010, states are struggling to pay unemployment compensation due to the overwhelming amount of former workers registered with unemployment offices. States must implement higher taxes on some goods to recoup losses, which means goods become more expensive.Lowered Standard of LivingHaving higher numbers of unemployed people lowers the amount of goods and services produced by the U.S. The gross domestic product is affected negatively by lower good production. Because the standard of living is positively correlated to GDP, it lowers as well.BenefitsTh
