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Introduction. The Rising Unemployment Has Generated Challenges

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Introduction The rising unemployment has generated challenges in low income communities. Unemployment involves a situation where people in a particular community are actively seeking employment but the employment rates are low. The increased rates of unemployment are contributed to by factors such as recession periods that adversely affects the economy. Impacts on the economy in turn affect the labor force leading to loss of employment and reducing the rates of employment opportunities in the country. The United States has experienced cases of recession periods and has caused significant negative impacts on the communities and economic growth of the country. The prevalence of high unemployment rates in low income communities in the U.S…show more content…
The New classical economists’ theory states that structural unemployment is a reflection of the government failure to address the unemployment issue. Studies reveal that the Great Depression that occurred in America and Europe in 1930s led to development of high levels of unemployment that adversely affected the American economy. The classical theory of economics argued that the effects of Great Depression on the economy would correct itself if the government does not cause any interference. It resulted in low levels of productivity in businesses that contributed to loss of employment and reduced income rates. The effects of Great depression facilitated the development of these theories to address the rampant rates of unemployment in America. These theories argue the market mechanisms are effective in addressing unemployment. Consequently, studies indicate that high unemployment rates contribute to increased levels of violent and higher property crimes in low income communities. The individuals in low income communities may become violent and move to cities or other wealthy residential areas in America and steal properties and obtain money for survival (Burkeman, 2009). Keynesian theory explains on the cyclical unemployment where individuals in society lose their jobs as a result of decrease in
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