Comparing GDP Per Capita and Unemployment Rates for Top Job Search Cities

Abstract

Project: Best Location to Search for Jobs One can define per capita GDP as the measure of a country's economic output per person. A microeconomic indicator measures the average income earned per person in a given region (for example, a given country) in a specified period (like a specific year). The unemployment rate is a microeconomic indicator that measures the underutilization of labour supply in a specified region. A good example that expresses the unemployment rate is the inabilities of an economy to generate employment for potential workers regardless of their urge to work or actively seek employment. The purpose of the per capita GDP is to measure the prosperity of a specified nation based on its economic growth, thus defining its ability or inability to sustain its populace. At the same time, unemployment allows the Federal Reserve to determine the state of its economy when setting monetary policy. To this effect, both microeconomic indicators help analyze the economic status of a given area over a given time; thus, people can choose which areas are best to search for jobs. Per capita GDP is calculated by dividing the areas total income by its total population therefore Per capita GDP for the four cities is: Abilene: $ 6 330 289 divide by 166 963= $37.91 Brownsville: $ 9 935 722 divide by 415 557= $23.91 Laredo: $6 769 544 divide by 259 172= $26.12 McAllen: $18 066 662 divide by 806 552= $22.4 The unemployment rate is calculated by expressing the number of unemployed persons as a percentage of the total number in the labour force. The unemployment rate for the four cities will be the remainder of the percentage of employed persons within each region. Abilene: Employed 79712 divided by 84227 multiplied by 100%= 94.6%. The total percentage is 100%- the percentage of employed 94.6%= Unemployment rate is 5.4% Brownsville: employed 145 885 divide by 162 955 multiply by 100%= 89.5% 100% -89.5%= Unemployment rate 10.5% Laredo: employed 93 268 divide by 100 354 multiply by 100%= 93% 100%-93%= unemployment rate 7% McAllen: employed 281330 divided by 316032 multiplied by 100%= 89% 100%-89%= unemployment rate 11% Abilene has the highest GDP per capita, implying that its economy has defined potentials in sustaining a high standard of living for its populations. However, the other three cities have slightly lower GDP per capita as compared to Abilene, meaning their populace do not enjoy as high standards of living as the Abilene's, with McAllen having the least GDP per capita of $22.4, which may be a sign of struggle to sustain its populace with everything they need. Regarding the unemployment rate, it is imperative to note that the higher the level of this microeconomic indicator, the higher the chances of poor living standards for the population. McAllen and Brownsville have the highest rate of unemployment of over 10%, implying that such an economy is struggling as not able to generate enough jobs for its people who are willing, capable, and searching for employment positions. Abilene employment potentials are defined by its lower unemployment rate of 5.4%. It is followed by Laredo with 7%, meaning that these economies can sustain their labour force with enough job opportunities. Based on such analysis, one can argue that Abilene and Laredo have the highest GDP per capita and lower unemployment rates, thus serving as the preferable cities for job searching. Summary of the Assignment I chose Abilene as the most preferred city to pursue my career after graduating. Based on the simple analysis of the four towns' microeconomic indicators, it is clear that Abilene proves the most potential in enhancing high living standards and ensuring job availability for its willingness to work for the population. Based on...