The American economy experienced its biggest recession in decades in 2008, and everyone knows the road to recovery has been a long and slow process. The economy is on the rebound, but there still is progress to be made. Many jobs were lost during the recession, but the actual cause of unemployment during a recession is the lack of hiring that occurs. A large part of having the economy regain its strength is not necessarily full recovery but the idea of full employment and getting as many people as possible back to work.
The unemployment rate was around 5.7% percent before the recession and it is said to be possible to get it as low as 4% without too high of inflation occurring. There are many benefits for having more employment, the first and most obvious one is that more people are working and able to put food on the table for their families. Another reason is that with a larger labor market, there is a greater chance for wage increases. More people making more money can stimulate the economy even further. A third reason why decreased unemployment is crucial is that when more people are working and making money, the standard of living increases and many peoples’ quality of living can increase. All of these things are directly related to getting the unemployment rate down and all of them will help lead us back to times of prosperity.
From February to March, employment in the private sector increased by 189,000 jobs. Many sectors added jobs between February and March, including construction and service-providing jobs to name a few, but the growth was don from the month before. Thius just shows that the economy is headed in the right direction, but we are not quite there yet. Things are looking up and the econokmy is strengthening, but in order to get back to pre-recession times and even grow beyond that unemployment needs to go down.