Macro Unemployment Rates Throughout the Term Paper

For the purpose of this discussion we will explain the economic impact of unemployment rates. One of the main impacts of unemployment on the economy is that it inhibits people's ability to pay for necessities and luxury items and in doing so consumer confidence is diminished ("Unemployment"). In addition when people are unable to purchase their basic necessities they begin to utilize welfare programs which can be associated with a whole host of economic and social issues when people are unemployed for a significant amount of time and become dependent on the system ("Unemployment").

As such low unemployment rates are encouraged because they have the opposite effect on the economy.

However, there are some unwanted effects of high unemployment rates, including inflation. According to the article there are also those that argue that unemployment can increase productivity and profitability because it causes people to fear that they will loose their jobs and as a result people tend to be more productive on the job. In addition, unemployment assumes that there is low real gross domestic product.This means that the economy is not utilizing all of its resources to their maximum potential.

Conclusion

The purpose of this discussion was to investigate the unemployment rate in Kentucky and to discuss the impact of unemployment on the economy. We found that the unemployment rate in Kentucky has fallen over the last few months but is still above the national average. We also found that unemployment can have both negative and positive effects on the economy.

References

Cracraft C. (9/26/2006) Jobless rates down in 75 counties from August 2005 to August 2006. Retrieved October 2, 2006 from; http://www.workforcekentucky.ky.gov/article.asp?PAGEID=4&SUBID=&articleID=558

Kentucky unemployment dropped in August (September 21, 2006) Cincinnati Business Courier. Retrieved October 2, 2006 from; http://cincinnati.bizjournals.com/cincinnati/stories/2006/09/18/daily38.html?jst=b_ln_hl

Unemployment." Retrieved October 2, 2006 from; http://www.colombialink.com/01_INDEX/index_finanzas_eng/unemployment.html.....