Instead, the axe had fallen on two software engineers, three sales account managers, and a shipping coordinator—all people whose work was demonstrably real.
If policymakers look only at U-3 unemployment, they may believe the economy is at "full employment." This leads to a tightening of monetary policy (raising interest rates) to prevent inflation. However, if hidden unemployment is high, the economy is actually not at full capacity. Raising interest rates prematurely can stifle growth that could have absorbed the hidden unemployed. hidden unemployment
In macroeconomic theory, the unemployment rate is a vital sign of an economy's vitality. Yet, the most commonly cited figures often paint an incomplete picture. When a recession hits, the official unemployment rate spikes; when recovery begins, it falls. However, the "falling" rate often masks a persistent detachment from the workforce. Instead, the axe had fallen on two software
While the first two groups are jobless, the underemployed are technically "employed." This group consists of workers who are working part-time hours because they cannot find full-time work. Raising interest rates prematurely can stifle growth that