It’sworth noting that the unemployment rate remained at 4.9 percent fromJuly to September 2016 which is a downward trend as compared toAugust 2015. Most of the unemployed people are the teenagers (16 to19 years) with their rate standing at 15.7 percent in August 2016.This rate has been on the decline as compared to 16.7 percent as atAugust 2015. Adult men (20 years and over) unemployment rates havebeen at 4.9 percent for three months in a row up to August 2016. Thisis a slight decrease from the past year which stood at 5.1 percent.
Bothwomen and men who are unemployed contribute about 4.5 percent of theunemployment rate in the US. There are no significant changes in thejobless rate between men and women hence they tend to move at thesame pace (B.L.S 2016).
Thelevel of unemployment of people aged 25 and above stand at 4.1percent as at August 2016 (B.L.S 2016). This rate has been slowlydeclining as compared in August 2015 which remained at 4. 2percent.People without high school diploma contribute to about 7.2 percent ofthe unemployment rate as at August 2016 as compared with 7.7 percentin 2015 while those with bachelor’s degree and higher contribute toabout 2.7 percent in the unemployment rate
Consumerprice index (CPI) is a statistical measure used to examine pricechanges in a basket of goods and services bought by households in aneconomy. There is a myriad of factors to be considered whencalculating consumer price index, these are:
Theuse or purpose of index number:It is important to define the purpose of CPI before constructing it.Since it is a single index, it cannot be used to make inferences onall other purposes. Thus, if the index is only meant to estimate theliving expense for people living in poverty, then products consumedby middle and upper social classes should not be considered.
Selectionof items:In calculating CPI, one must decide on the commodity or service to beincluded. It is crucial that the sampled goods and services representthe taste and preferences of the persons for whom the index iscomputed.
Pricequotations:After having selected the relevant items, the next step involvesattaching the monetary value to them. Since it is impossible tocollect the prices of these commodities from all markets countrywide,we use a representative from the markets. Thus, a selection has to bemade on samples of persons and places to acquire these prices from.These estimates are obtained in areas which are relevant for tradingthese commodities.
Selectingthe Base period:The base period is of particular importance since it serves areference. Base period should be both a regular year and not far inthe past. Establishing a regular year is hard. What seems normaltoday may be abnormal tomorrow.
CPIand PPI are key economic indicators for the economy of United States.The primary source on CPI and PPI is found on the government websitewhich is Bureau of Labor Statistics. It can also be obtained in otherstate sites such as The Census and The &StatisticsAdministration through the US Department of Commerce (B.L.S 2016).
Thecurrent level of inflation in the US stands at 1.1 % as at August2016 (B.L.S 2016). This level of inflation has been steady for sometime implying an economically stable nation. This kind of pricestability, implies properly managed markets with demand equated tosupply at all times.
B.L.S(2016). Retrieved 3 October 2016, fromhttp://www.bls.gov/news.release/pdf/cpi
B.L.S(2016). Retrieved 3 October 2016, fromhttp://www.bls.gov/news.release/empsit.a.htm