An overview of unemployment in the United States since 1970 reveals several significant patterns. Unemployment in the past two decades continues a trend that began after World War II, when the unemployment rate began to drift upward, with the composition of the unemployed changing demographically, accompanied by a substantial change in the level of wage inflation and its relation to unemployment in the overall economy.
Between 1950 and 1960, the unemployment rate averaged 4.5 percent, with a range between three and seven percent. Between 1960 and 1970, the average was 4.8 percent, with a range from five to eight-and-a-half percent. From 1970 to 1980, the average rose to 6.3 percent, and the range was from five to eight-and-a-half percent. Between 1980 and 1990, the average rate was a little over even percent, with a range from five to about ten percent. As of December 1994, the unemployment rate stood at 5.6 percent.
In general, statistics show certain trends in unemployment rates in the U.S. The rate of unemployment among 16 to 20-year-olds has steadily increased in recent years. The rate is highest for black teenagers, making them the hardest segment of the work force to employ. The rate of unemployment among white males between 25 and 35 has grown relative to that of older white males. The rate of unemployment among blue collar workers has increased relative to that of white collar workers. Unemployment among workers without a high-school education has increased steadily relative to more educated workers. Though unemployment cuts across all socio-economic segments, in general, the unemployed worker today is most likely to be a young black male with limited skills and education.
What are the factors that affect unemployment rates? One important factor is the changing nature of the work force. Since World War II, and increasingly in the past two and a half decades, the U.S. work force has...