09 May 2012
Economics in the News
On May 3rd 2012, Matt Rourke wrote on the TIME article "U.S. Application for Unemployment Aid Drop Sharply,"that the number of people who are looking for unemployment benefits in Washington, fell last week by the most in more than three months. When these applications (which are seen as a measurement of thepace of layoffs), fall below 375,000 it typically means that hiring will be strong enough to lower the unemployment rate. These past four weeks, the number of applications went to 383,500. This has beenthe highest level since December. It is weird especially since in the fall the number of applications were steadily decreasing. Not only did the applications increase during this month but hiringslowed down in March as well.
This event will affect the unemployed in Washington because the unemployment aid droped. Many have families to support and without temporary aid from thegovernment, there could be worse consequences than just being unemployed alone. For example, by not receving aid how else will families and affected ones pay off bills and maintain their families asthey look for another job? The unemployment benefits would really aid these families in need. As everyone knows, unemployment does not come alone. As an obvious outcome of not having a job it's nothaving enough money or no money. Where do these people go? They recruit to other places for help of course. Places like home shelters and charities. These places would then have to increase their supplyas the result of demand increase. So, now not only has the unemployed been affected, but charity and home shelters have too. It is just a circle and either way, the government would have to aid oneway or another.
This article relates to me because my brother lives in Washington. If he were to be unemployed, he wouldn't receive as much help. And if he doesn't receive much...