What caused unemployment rates to drop?

But the decline was largely caused by the nearly 40,000 Californians who stopped looking for work altogether, even as employers added 119,600 new jobs. Similarly, California’s unemployment rate improved 0.3\% between December and January, partly because 36,500 people dropped out of the job market.

What can the unemployment rate indicate show about the economy?

Obviously, the unemployment rate is important as a gauge of joblessness. For this reason, it’s also a gauge of the economy’s growth rate. The unemployment rate is a lagging indicator. This means it measures the effect of economic events, such as a recession.

Why is a decrease in unemployment Good?

Low unemployment reduces the strain on the government, and taxpayers, to support a large population of people out of work. With more people working, the government has less burden to put money into welfare assistance programs. Also, more people working allows the government to bring in more tax revenue.

Why is it bad to have a high unemployment rate?

The unemployment rate is one of the primary economic indicators used to measure the health of an economy. A high unemployment rate means that the economy is not able to generate enough jobs for people seeking work.

Why unemployment is bad for the economy?

Unemployment has costs to a society that are more than just financial. Unemployed individuals not only lose income but also face challenges to their physical and mental health. Governmental costs go beyond the payment of benefits to the loss of the production of workers, which reduces the gross domestic product (GDP).

Is unemployment good for the economy?

Unemployment benefit programs play an essential role in the economy by protecting workers’ incomes after layoffs, improving their long-run labor market productivity, and stimulating the economy during recessions. Governments need to guard against benefits that are too generous, which can discourage job searching.

Is the unemployment rate really the lowest it has been?

In December of 2019, the unemployment rate was a scant 3.5 percent, the lowest it had been in 50 years. However, as good as that number was, when Trump took office the rate was already at 4.7 percent. That figure is quite low by historical standards (lower than all of the 1980s as well as most of the 1990s and 2000s).

Is Trump’s administration responsible for ‘Best unemployment numbers in history’?

About six weeks later as the deadly virus spread nationwide, Trump doubled down on that “50 year” claim and said his administration is responsible for the “best unemployment numbers in the history of our Country.” He tweeted:

Did Trump’s fiscal policies lead to millions of workers finding jobs?

But that statistical snapshot is missing necessary context to consider the claim — that Trump’s fiscal and regulatory policies led to millions of workers finding jobs — accurate: In February 2009, roughly one month after Obama was sworn into office, he signed a $787 billion stimulus package to save jobs and reverse the economic downturn.

What is the unemployment rate for black workers in 2019?

Likewise, the unemployment rate among the same demographic remained below 4.4\% between April and June 2019. In 2009, the unemployment rate among Black workers or African Americans steadily increased month-by-month, reaching an annual high of 16.1\% in December.