Causes Of Unemployment In The United States

Since the early 2000’s the unemployment rates of the United States have been constantly changing. For most of this time unemployment rates were increasing at a quick pace as the country was dealing with internal financial issues of its own. When people are out of work the rates of depression and crime seem to skyrocket. This is due to the lack of funds coming into a home which result in some less than admirable acts being committed. There are many causes of unemployment and many effects that unemployment can have on not only our economy, but our personal lives as well.

problem at hand is the rising rate of unemployment. This problem must be dealt with

Beginning with unemployment in the 2007-2009 recession, U.S. unemployment rates peaked at 10% as well as held 41 consecutive months at rates higher than eight percent (Lazear 1). The U.S. economy plummeted during this time; many attributed the shift to a large decrease in the number of employed workers. To be able to better understand the unemployment issue, we must first examine the form of unemployment faced by the U.S. economy. Many believe that the changes faced by the U.S. labor market

5Nickell, S., (1987).A Historical Perspective on Unemployment: A Review Article.Journal of Political economy. Vol. 95, No. 4, p 857-869

around the globe, explanations of this phenomenom are plenty. How does unemployment serve a purpose, or is it just another chance for the powerful to stamp on those with less power? The

Once a you become unemployed, however, you become powerless, desperate for any source of an income. Once in this position, an individual is likely to take a job which is below their capabilities and for less pay.  The difference in class and standing continues to increase. Those with money have the luxury of waiting for a job that strikes their interest, not just a job to make minimum wage.  They can wait until an appropriate job comes up or they can further their education to improve their position even more. Economically, the world is entering into a new phase in which fewer workers will be needed to produce the goods and services for the global population.  For most of the modern era, people's worth has been determined by the value of their labor and skills.

In this essay, I will speak about the structural unemployment and the effects that have on the economy.

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

This further enhances our view that most of the unemployed people are those who can afford to be one, so it reveals that our country is not only burdened with high unemployment but also from dire conditions faced by those who are already employed. This now questions my belief on whether the establishment of special economic zones by the current government would remedy both problems. Lastly, it is a question of whether there is a need to reconsider the merits of unemployment in establishing policies.

Unemployment has always been something that Americans have worried about since the great depression in which one in every four people was unemployed. High unemployment has an impact on every one even those whom are still currently employed. For example if the unemployment rate is particular high then even those with jobs get worried. Unemployment is also separated in to distinct categories base on which group is the focus of the study. The categories can be by race, age or location, for example the unemployment rate of those between the age of sixty and sixty-five could be compared those between the ages of thirty and thirty-five. These categories allow economist to see which groups are the best and which groups are worst off. One group

The fall of the economy at the end of our former president George W. Bush as led many of our citizen to be unemployed. It is the second highest rate that this country has seen since the 1980s. Our highest unemployment rate was in 1982 with a percent of 10.80 of our citizen been unemployed. The unemployment rate of our society today is at 9.60 percent leaving it 1.20 percent shy of 1982. According to the US labor report of August 2010, “The unemployment rate in the United States was last reported at 9.60 percent in August 2010. From 1948 until 2010 the United States’ Unemployment rate averaged 5.70 percent reaching an historical high of 10.80 percent in November of 1982 and a record low of 2.50 percent in May 1953” (CIOL, 20010). Since the Obama administration, I have seen some changes in our Unemployment. Companies are hiring more than they did two years ago. Therefore opening up new jobs for our citizen such as welding, construction, and banking.

Unemployment is a condition of involuntary or forced idleness, which on the one hand hinders effective demand for agricultural and industrial products, and on the other paves the way for anti-social activities. It indicates a situation wherein all human resources which should have been geared to maximise the natural production are not being utilised. Such a situation results in far-reaching consequences. It makes the measures to increase production and renders the rights of labour unsafe. It is a criminal waste of pro¬ductive power. Though it is a

This investigation is regarding an extremely important subject that doesn’t only affect America but also many countries around the world. I believe the global economy is going through a very difficult period. Today we can see many countries with big debts, some even going bankrupt, countries like Greece and Ukraine in Europe, to Pakistan in Asia, to Ecuador, Venezuela, Argentina and Belize in the Central and South America (M. Hess). I was very intrigued and wanted to find out more on why unemployment rates vary among countries; therefore, I decide to do my research on unemployment rates. If the economy is in such a bad state, there must be a connection, something that is causing unemployment rates to be higher in some countries and lower in others.

Contrary to what some economists believe, involuntary unemployment is a very real and continuous presence in the economy, both past and present. In the United States, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. According to the Bureau of Labor Statistics (BLS), the current unemployment rate is at 5.4 percent, down from the high unemployment levels of a lingering 10 percent during the most recent recession less than six years ago. This rate fails to include other failures in reaching full employment, such as “the number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) … These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job” (Taborda, BLS). Involuntary unemployment is a common occurrence in capitalism that happens when, rather than simply not choosing to work at the set wage, a person is willing to work at the prevailing wage and yet remains unemployed. What many economists have sought and continue to seek to find out is the cause of high unemployment levels, whether that be what motivates humans to act in the economy or the nature of the system of capitalism.

Unemployment is a phenomenon that occurs when a person who is actively searching for employment but is unable to find work. In recent months, there has been a debate has appeared asking if the U.S. unemployment rate is indicating the economy has reached or nearing reaching full employment. That is a reasonable question considering the unemployment rate has reached an all-time low of 4.4%, and it has not been that low for years (FRED),. A reason for the lower percentage is that “employers added 211,000 jobs in April as the unemployment rate ticked down to 4.4 percent, the lowest level since May 2007” (Worstall). Unemployment is one of the sectors of the overall economy that is still lagging with regards to other sectors. It also appears that some businesses may been hiring more and willing to take more people in to employ. It is important to note that while the unemployment rate is still existing, it is surely creeping down. The low unemployment will help with the GDP because more goods and services will be stimulated with all the new workers being eager to work.