Causes of Unemployment in the United States (Essay Sample)

Causes of Unemployment in the United States
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Causes of Unemployment in the United States
Unemployment is a terminology that describes a situation in which employable individuals who are job-seeking cannot find work. Alternatively, it can describe a situation where persons in the workforce do not have suitable jobs. However, this term is not usable in describing people who have given up their jobs for personal reasons or those without jobs but have not looked for work in the previous month. There are recognizably three types of unemployment in the United States. These are cyclical, frictional, and structural unemployment. The unemployment issue in the US is a consequence of many factors that can be discussed based on the type of unemployment they result in.
Cyclical unemployment is the sort of unemployment created when the demands of consumers are usually dropped due to an economic slump. This type of unemployment arises from the normal cycle of a business. In response to revenue loss, firms have to lay off employees. As a result of these layoffs, consumer demands further plunge, leading to increased unemployment (Caggiano et al., 2017). The final effect is a scenario in which the number of persons applying for employment is higher than the job opportunities available. A state of affairs then created is termed demand–deficient unemployment. Another cause of this phenomenon is the heightened minimum wage in the US (Caggiano et al., 2017). Therefore, firms in the US limit hiring and would prefer cutting down the employees on their payroll rather than hiring more workers.
Frictional unemployment is another category of unemployment that arises when people shift jobs or search for work. Frictional