This paper examines unemployment in the United States of America by using information from the U.S. Bureau of Labor Statistics. This paper also examines the varying causes of unemployment that can be found within the U.S. economy. Employment status contributes positively to the growth of world economies according to Kalousova and Burgard (2014). New and emerging technologies have changed the job market. However, these adversely affect employment opportunities in local communities by displacing traditional sources of work (Holland, 2015) or increasing the costs of employment (Michaillat, 2010). A decrease in demand for consumer products has also negatively affected production-oriented industries (Lazer, 2014). This has led to a reduced need for labor. The U.S. government may need to intervene by managing its monetary and fiscal policies to spur economic growth. Government intervention could mitigate the rise of unemployment in the country. These multidimensional aspects of unemployment will be demonstrated in the context of financial systems and economics. ]
Unemployment is represented by the number of people who do not have jobs in the workforce. It is calculated in a percentage by dividing the number of individuals who are jobless by the total labor force. It exempts the retired, disabled, and those able to work but not currently searching for a job; e.g., they may be in education full-time or looking after their children. Previous research has illustrated that unemployment rate in the United States (U.S.) was 4.5% in February 2007 and 9.8% September. In 2012, the U.S. unemployment rate stayed at 8% (Farber and Valletta, 2015 ).
The U.S. Bureau of Labor Statistics (BLS) provides monthly employment reports and demonstrates the state of the U.S. economy. The BLS provides a snapshot of the strength of the American economy in terms of employment and unemployment. The effect of a high unemployment rate in U.S. economy is dire.
The government loses a lot of money on consumers who are unemployed. Long-term unemployment can often be psychologically and financially straining on people. Continuous unemployment can lead to depression, illness, family and relationship problems, marital strife, and even suicide. Employment determines a person’s social class in the society. It is perceived by many as a significant element needed for happy life. Employment is a major driving force of any economy in the world (Kalousova and Burgard, 2014).
People who have jobs can pay bills, provide for the family, and give back to society. Widespread unemployment in the U.S economy has recently produced a spate of foreclosures with its joint erosion of robust neighborhoods. The U.S. government is exerting effort to reduce the high rate of unemployment. Some key factors that were important included what causes unemployment, the way it is measured as well as fluctuation in recent years.
According to question two, unemployment is a multidimensional economic concept that presents itself in the contemporary marketplace. The BLS measures unemployment through the use of data from two surveys. The first, The Establishment Report, uses a random sample of questions asking employers about the number of people on their payroll. The second, Current Population, collects data from about 60,000 households; the bureau determines whether members of a household are working or searching for jobs.
These sets of data assist the bureau in providing an estimate of the number of working and unemployed Americans. The BLS also produces a list of unemployed or dismissed workers who are actively looking for employment opportunities (Helliwell and Huang, 2014).
Numerous studies have been conducted to demonstrate the causes of and remedies for unemployment in the U.S. economy. Four main aspects have been identified based on the sample articles. Most of the studies indicate that there are three key categories of unemployment in America: frictional unemployment, cyclical unemployment, and structural unemployment.
New technologies in the U.S have tremendously contributed to the rise of structural unemployment. It is the result of a mismatch between industrial development and the capacities of the local economy. For instance, structural unemployment can be significant in a setting where there are technically superior jobs available, but the workforce in the area does not have the skills to carry out the task. On the contrary, structural unemployment can also be found in areas where there are workers available but no work for them to occupy.
The U.S. newspaper industry provides another illustration. Many people who were working in journalism as reporters, editors, and production workers have lost their jobs over the last decade. This is in part because of a global shift towards web-based advertising which has eclipsed newspapers. That meant a growing number of people could get news via television and the internet. Studies show that all individuals who were laid-off, including journalist, deliverers, and printers also form a portion of structural unemployment (Holland, 2015). Technology in the U.S. has forced workers to stay competitive in the job market.
Frictional unemployment is a temporary transition of employees leaving regular employment to search for a particular job that matches their skills. In the U.S., workers move from one job to another looking for better pay or relatively better working conditions.
Studies reveal that frictional unemployment is present in any economy. It is a common trend in U.S. to see people returning to the labor force to find a job that is in line with their profession. Frictional unemployment may also be influenced by employers who refrain from employing or laying off employees because of the increasing costs of recruiting new workers (Michaillat, 2010).
Cyclic unemployment is influenced by a boom and bust economy geared by the nature of capitalism (Lazer, 2014). This type of unemployment happens when there is not enough demand for products and services in an economy. Production is the driving force behind the creation of enough jobs for everyone in the U.S. Demand drives production in the form of consumer goods or services. Several studies indicate that many people have lost their jobs in America during recession cycles.
The federal government relies on information from the BLS to ensure that unemployment does not exceed 6%. When the employment rate is greater than 6%, the government will step in to try and create more jobs. The government has many strategies to curb unemployment in the U.S.; Major government strategies include monetary policy and fiscal policy.
The federal government can facilitate the circulation of money in the economy by purchasing and selling monetary instruments. This strategy will allow more money to enter the economy to support business and commerce expansion. This, in turn, leads to job opportunities.
In conclusion, I agree with the premises of the article used for question one. Because of the complex nature of unemployment it is valuable to address the variegated aspects of surrounding economic structures. The article presented a multidimensional approach which explains contemporary issues with a great degree of certainty. In my opinion, the federal government can decide to use various fiscal policies to strengthen the economy. Monetary policy is a useful strategy to combat the increasingly high levels of unemployment in America. The federal government can increase spending to reduce the rate of high unemployment. Finally, the government can reduce taxes on business and individuals to spur economic growth.
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