In a recent article published by the Washington post, unemployment rate has fallen to 5.1 percent which is the lowest we have seen in forty years with the exception of a few years in the 1900s.This is due to more people getting jobs which are mostly provided by the health sector and a smaller number of people giving up looking for jobs in the work force. Even though, there is the addition of 173,000 jobs, and the decrease in unemployment, workers pay have remained very constant. American employers are still not willing to raise the wages and salaries of their employees which is all due to the slow to rise prices i.e. Employers will lose profit if they should increase their labor pay without increasing the price of goods and services. Also the …show more content…
The poverty rate increases in a society filled with unemployed individuals who do not have any source of income. Socially, illegal means livelihood is on the rise in communities with a high rate of unemployment. Illegal activities such as, burglary, drug trafficking, prostitution, fraud, bribery, and so on are solely done all in the name of making money. This is why unemployment also poses a risk to our national securities and makes law enforcement job harder. Unemployment can also lead to loss of human resources. When people are unemployed, the economy does not get the chance to fully utilize the production capabilities of the individuals. Hence, both the government and the unemployed are at a loss. Also in some countries like the United States, the government pays the unemployed some benefits which generally funds are gotten from pay roll taxes imposed on employers. So, if the number of people without jobs increases, the government’s income will decrease while their expenditure will …show more content…
While large businesses are at an advantage here in the United States because they have access to large capital with less interest rate, small business with little customers which are the main source of job production are at a disadvantage, because banks are more reluctant about providing funds to them. Banks believes these small businesses have a small number of customers and an uncertain future. I believe if the federal government should look for other ways to provide funds to small business, we will see a positive change in the rate of unemployment.
Another way to reduce the rate of unemployment is to import less and export more .When we import less, this would give opportunity to small businesses to grow here. Exporting more goods and selling it at a price cheaper than the countries selling price, would also increase the quantity supplied and in turn increase the demand of labor here in the United States. Therefore, this will reduce the rate of unemployment and cause a growth in the
2009, the unemployment rate decreased gradually. This statistic shows that the policies of United States are very successful.
Raising the pay for minimum wage workers will be the proper way to create effective results, yet there exists those who oppose an increase. Neal Asbury, an American entrepreneur, writes “Raising the Minimum Wage Brings Minimum Benefits” to express how a hike in wages will increase unemployment levels. The author introduces a survey done in 1992 regarding economists’ beliefs towards an increase in minimum wage, where 72 percent claim it would hurt unemployment levels (Asbury). According to this claim, more than half of economists argue that if a rise in minimum wage is to occur, unemployment will soar among the country. Businesses will be prone to lay off employees or hire fewer workers because of higher costs and will lead low-skilled workers to be jobless. An increase in pay will lea...
Unemployment of 7.3% has been a part of having illegal immigrants taking jobs of Americans. Many construction jobs and hardworking jobs are being taken from Americans because many immigrants are willing to do more work for less pay and this can truly affect the unemployment rate. Multiple occasions, in which, a citizen of the United States cannot find any jobs, having to start a new career, possibly having to move to where one can find a fertile econom...
Unemployment is an issue that national leaders try to deal with every day. Many job-creating strategies have been put forth over the years, and, in recent times, a popular strategy is to raise the Federal minimum wage. However, increasing the minimum wage could have an unforeseen effect on America’s job market that if unchecked could spiral out of control.
For what has been a very, very long time, our elected representatives have sought to achieve “full employment” as a national goal….but full employment has been suspect as a possible cause of inflation, and is therefore weakened by decisions of the Federal Reserve, in an attempt to retard inflation. In terms of causes, unemployment has changed; the character, degree of severity, possible solutions of unemployment over the last ten years or so have been reduced, and has morphed in terms of just who is experiencing the unemployment and the suggestions for answering the problem. It has been the traditional fundamental trades, like manufacturing, viewed as part of the shift in the economy towards the new information age model, as workers transition from a manufacturing economy to a service economy, all the while over-coming the obstacles set forth by our own government.
The United States is home to nearly 317 million people to this date, with nearly 50 percent of them working on minimum wage jobs. That’s a lot of people working long hours every day for jobs that do not or barely pay them enough to feed themselves and their families. However, the rise of minimum wage would make plenty of jobs. The current unemployment rate in the U.S is 6.7 percent; the lowest it has been since president Obama took office. Most of this 6.7 percent is made up of teenagers and the middle aged who are looking for a second job to support their families. This is a demographic that would not settle for 7.50 an hour, even for part-time jobs, and the small pay discourages other groups of new workers to stay away from those jobs. Some of thes...
Since, the beginning of Donald Trump’s Presidency, the stock market has improved increasingly and unexpectedly. Trump’s Presidency has helped improved the stock market, and a month after the election the S&P 500 witnessed a huge increase of two percent. As the charts demonstrate, Trump’s Presidency has created an unexpected improvement in the S&P 500 and Dow Jones Industrial. A solution that Trump is using to fix the economy is the creation of more jobs in the United States. While the economy is improving from the Recession in 2008, the rate of unemployment has presented a major challenge for citizens in the economy. However, with Trump’s solution to increase jobs in America, the unemployment rate has continued to decrease. "To get the economy back on track, President Trump has outlined a bold plan to create 25 million new American jobs in the next decade and return to 4 percent annual economic growth,”(Bryan para 3). Since, the recession of 2008, unemployment has decreased substantially. As the graph
The United State’s Minimum Wage is about to be the lowest it has ever been. Even though minimum wage has been increased a couple of different times, inflation is the core
The unemployment rate has dramatically increased over the last several months. This increase has created many complications for the American people. Although the United States economy has created over 7 million jobs, there is still a long way to go until the economy is back on track.
Anyone who’s ever worked for a company, or worked a job is all too familiar with bargaining for salary. Employees are usually unsure of if they’re asking for too much, or asking for too little. Unbeknownst to them, most of them are already making too little. In this case, one could use minimum wage workers as an example. They work unrealistic hours to pay to support themselves while still not earning a living salary. The last minimum wage raise was in 2007, and it hasn’t budged since then. Since then, the economy has gone through multiple inflations and yet the minimum wage has not yet adjusted to match it. Although many opposing sides disagree because they think that it will raise taxes, the minimum wage should be increased to adjust to inflation,
Fiscal policy, as we know it today, is meant to mitigate unemployment and stabilize the economy through aggregate demand. Despite dismal unemployment numbers, politicians and policy-makers continue to use and be optimistic about the effectiveness of fiscal policy in this regard. Policy as we have seen over the past five years has had dismal effect on the unemployment numbers we are seeing today. It seems we need a policy that will tackle lagging aggregate demand as well as the employment problems. A direct-job creation effort will work to create the differences in aggregate demand and effective demand creating equilibrium and filling the void that the current Keynesian fiscal policy leaves.
The United States has an ongoing conversion in the economy that has caused many lives to turn upside down. Many people can testify to the changes including the fact that the richer have been getting richer and the average working Americans have gotten significant hardships. Some of the economic issues that the U.S. has are wage reductions, long-term unemployment, economic insecurity, families getting behind on payments, and no medical or dental insurance. Unlike the Individualistic theory the problem is not the people themselves they do not lack skills or have disable to work the real problem is the political economy. Most people need a job to make a living but we have no control on what jobs are actually available or how much they pay. In reality our lives are in the hands of external forces when it comes to the labor market. In the economic perspective poverty rates are determined by the amount of jobs and their wages. When jobs are low and wages are low the income of Americans goes down and poverty rates goes up. The recession of 2008 could be used to explain this. On the other hand when there is a great amount of jobs and wages are high, the poverty rate goes down and the income of Americans goes
In the past fifty years the economy of the United States has changed dramatically, whether it be the social or economic status. What can be said is that with the current recession that has taken place the lives of millions of Americans are being affected everyday. More jobs are being cut, and newer job opportunities are being taken away because of insufficient funds or lack of education. What I am planning to propose is a budget that will drastically change the way the economy has been looked upon in the last century. More so I plan to introduce a way to fit a newer form of a capitalist economy into the government system, mainly to increase the percentage of American work force between seventy-five percent to eighty-five percent to preserve better living conditions.
The purpose of this paper is to understand the effects that unemployment has on the family as a whole. In today’s society being unemployed impacts greatly on almost every aspect of an individual’s life and depending on their personal circumstances, it is likely to impact on other family members lives too.
Small businesses have a clear relationship with the economy in general, and if we take an example like the U.S. where over 86% of businesses ...