Unemployment refers to the share of workers in the labor force who do not currently have a job but are actively looking for work.[1] The unemployment rate is based on a proportion of the labor force, not the population as a whole, and excludes students, retirees, and those who stay at home to care for family members.[2] Unemployment is considered one of the most important economic indicators, as it is viewed as a measure of the economy’s overall health, and regularly receives a significant amount media coverage. Parental job loss has been associated with many adverse outcomes for children related to future economic mobility, educational attainment, and life satisfaction.[3] Statistics surrounding unemployment seek to address the extent and nature of the problem and can be used by policymakers to determine if intervention is needed to aid in economic recovery.[4] Data shows that unemployment in the United States was gradually declining between 2009 and 2019, however, took a sudden spike in 2020 due to the COVID-19 pandemic. Fortunately, as of 2024, unemployment has returned to the pre-pandemic rate and economic prospects for families are on an upward trend again.
[3] Nikolova, M., & Nikolaev, B. N. (2021). Family Matters: The Effects of Parental Unemployment in Early Childhood and Adolescence on Subjective Well-Being Later in Life. Journal of Economic Behavior & Organization, 181, 312-331. https://doi.org/10.1016/j.jebo.2018.05.005
