Unemployment in the US (Essay Sample)

Unemployment in the U.S.
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Unemployment in the U.S.
Different social problems affect many countries worldwide.s One of these problems is unemployment and U.S. is not an exception. Joblessness is an alternative term for unemployment, which is a situation where people do not have jobs but are practically searching for them (Akpandjar, 2013). The youth is the most affected group by this social problem; hence idleness is an inherent experience after completion of studies. The rate of unemployment shows the unemployment pervasiveness, which is determined by dividing the number of people who are unemployed by the total number of those who are employed (Basile & De Benedictis, 2013). According to several economic pieces of research done in different countries, during recession periods, countries experience high rates of unemployment. Primarily, this phenomenon was experienced in 2011, where at least 200 million people globally lost their jobs as a result of the deteriorating economies (Sheng, 2014).
Notwithstanding that U.S. is one of the largest economies in the world with many large industries where people can be employed, and a reasonably established economy, its unemployment rate is still at a considerable level. This has turned a significant issue for the politicians and US citizens who use it as venues to fight against their political opponents during campaigns (Akpandjar, 2013). Unemployment has also brought a lot of problems in the nation in various perspectives such as social and economic. Besides, there are common factors that lead to unemployment and hence increase the rates of unemployment in different countries worldwide. Fortunately, there are some ways by which some of these factors can be harmonized to reduce the rate of unemployment. Countries have developed particular policies with an aim to rectify the joblessness in their territories. The purpose of this paper is to examine the problem of unemployment in the U.S.
The rates of unemployment in the U.S.
Although it is the world’s superpower, several individuals in the United States are unemployed. There are approximately 13.9 million Americans who lack jobs (Sheng, 2014). This is a number only includes those who are looking for jobs. It is further reported that those who are unemployed in the country are more than the total population of people living in the Illinois state, which is the biggest state in the U.S. The global financial crisis which has led to the falling economic growth being experienced in the country has been blamed for the high rates of unemployment experienced in the U.S (Basile & De Benedictis, 2013).
However, the federal government is struggling to develop policies that will help boost the economy of the nation so that many more job opportunities can be created for those unemployed individuals. One of the favorable strategies that were developed by President Barrack Obama is a stimulus package. This initiative has brought a significant reduction in the rate of unemployment in the country (Sheng, 2014).
Historically, it is noted that, between 1948 and 2012, there has been an average unemployment rate of 5.79%, and in 1982 mainly, the rate reached the extraordinary high rate of 10.80% (Sheng, 2014). The low rates were recorded in May 1953 at 2.50%. In 2013, about 7.3% of the national population was unemployed (Sheng, 2014). This represents 11.3 million people in the nation. This has negatively affected the economy of the country. The rate of unemployment among men and women are approximately 7.0% and 6.4 % respectively (Gohmann & Fernandez, 2014). Following the increase in countrywide women empowerment programs, the employment for women has increased. The highest rate of unemployment is among the teenagers who stand at approximately 22.2% (Sheng, 2014). This can be as a result of their lack of skills, improper implementation of programs for youth empowerment. Besides, there is a significant disparity in the unemployment rates among different racial groups. The blacks reported the highest rates of unemployment with at approximately 13.1% of them being unemployed (Sheng, 2014). The whites recorded the lowest rates of unemployment were about only 6.3% were unemployed (Sheng, 2014).
Causes of unemployment
Several factors have contributed to the increased rates of unemployment in the country. Firstly, the poor performance of the country’s economy has resulted in the rise in the rate of unemployment in the nation. One of the most significant milestones, recent economic crisis, is considered as the cause for the increase in the unemployment rate (Gohmann & Fernandez, 2014). Due to the economic crisis, different sectors in the country were affected differently thus reporting different unemployment trends. An example of the sectors that were profoundly impacted by this crisis is entertainment and leisure (Sheng, 2014). Thus, this led to the high unemployment in the area. Additionally, as a result of the crisis, many individuals were dismissed from the marketing and retail industry resulting in many workers becoming losing their jobs and become jobless. Following the shutdown made by the government recently in the health sector, nearly a half a million individuals have been dismissed from work (Sheng, 2014).
Moreover, the increased part-time jobs have made many companies be reluctant to employ people on contracts that are long term or permanent. Many companies also have failed to reinvest their profits in employing people thus contributing to the rise in the unemployment in the nation (Sheng, 2014). To add on this, many companies have come up with plans to spend their profits on different programs or projects other than increasing the workers number. The occurrence of the economic crisis has caused many companies to be alert in raising the number of their workforce or staff.
Primarily, the companies find it more difficult and expensive to maintain their staff during such periods, such as in compensating them, which can negatively affecting the companies in terms of high levels of expenses (Gohmann & Fernandez, 2014). This has led to the high levels of unemployment in the nation while companies want to be assured for a stable economy before going on board to recruit new or more workers.
Moreover, the increasing trend of the dismissal of workers by the government causes unemployment. In recent years, both the federal and state governments have chosen to lay off any workers (Gohmann & Fernandez, 2014). Instead of looking for ways to improve the economy during the tough economic times, many government institutions and corporations make decisions to dismiss workers. The increased pattern of the dismissal has motivated the private industries in the country to imitate the government institutions' actions because of the fear of the tough economic periods (Gohmann & Fernandez, 2014). Many people have been discouraged to seek jobs due to the high rates of unemployment. They have developed the opinion that it is hard to find employment in the current society.
Different types of unemployment have led to the high unemployment rates in the country. Structural unemployment, for example, handles the high levels of unemployment in the country as compared to cyclical unemployment. The technological changes in the areas where employees are assigned to work lead to structural unemployment while changes in the demand for jobs falling and rising during business off-peak and peak seasons respectively result in cyclical unemployment (Sheng, 2014). Structural unemployment also occurs when the individuals seeking jobs do not apply quickly to the vacant jobs due to the mismatch in their skills (Sheng, 2014). It is evident most commonly in the finance, construction, and real estate sectors as a result of the financial crisis in the country. Thus workers who use to work in these sectors thus cannot adapt themselves to other sectors that grow in the economy su...