Unemployment
Unemployment is controversial topic, especially in the last few years. CNN reported that 91 million Americans are currently unemployed. That sounds like an astounding number; however, that number includes teenagers, stay at home mothers and caretakers. In the current economy, unemployment is high among teenagers as well, “Last month the employment –to-population ratio for teens was stuck at 25.8 percent – it’s worse than the Great Depression.” (Coy, 2014). It is important for teenagers to have an opportunity and obtain experience in order to be successful once they become adults. It is important to help teens move out the long-term unemployment statistics by having more job opportunities for that population. In addition, long term unemployment has a negative effect on the economy compared to short-term unemployment. Even though the United States has a high volume of unemployment, short term unemployment is minimum in comparison to Europe. Unemployment benefits offered in the US run out in six months while in Europe benefits continue indeterminately. Perhaps the US unemployment system is not so bad after all.
Effects on Micro and Micro-economics
The micro issue is the individual that are unemployed on the long-term basis forcing that population to live in poverty. Long-term unemployed individuals become less attractive to employers. Meanwhile in the macro picture employers have shortage of employment even with the large unemployment numbers, causing inflation to increase even while unemployment is so high. This creates a repetitive cycle, less production, less jobs, higher prices, less purchases due to cost. Teenagers are affected by this cycle as well. According to ( Coy, 2014) unemployed teenagers are in at...
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...lity; I definitely wan to do my part to learn what politicians want to do about unemployment. I want to make an educated decision about who to vote for in order to help our economy.
Unemployment affects the overall economy. Individuals that don’t have jobs, they can’t spend money. Consequently, if demand of products slows down so will productions. This causes inflation and not every buyer will want to pay inflated prices. It is imperative that we are educated when voting. Making the next generation successful should be a primary goal. Teenagers need to be trained for the work field. It is our job to have a better economy for the future of this country. If unemployment benefits are extended past the six months this might help the economy due to people spending and it’s basically and injection; it could also increase our long-term unemployment like it has in Europe.
A majority of people believe that graduating from college will result in a well-paying job. Unfortunately, a degree will not secure a job for many graduates. In the U.S., the jobless rate for college graduates in 2012 was 7.7 percent, and has further increased in the past five years(Robinson). With such a large pool of unemployed citizens for employers to choose from, recent graduates are facing fewer opportunities for work due to little or no previous work experience(Robinson). Although many graduates are faced with unemployment, the majority do receive the opportunity to work. Sadly, many must work jobs they do not enjoy for salaries that make it difficult to make ends meet(Debate). Students are faced with mortgage-sized debts upon graduation, making it difficult for them to start businesses, buy cars or houses, or make other investments that would better the
The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate.
Jobs won’t only support teens for the things they want, but it can help benefit for the things they need. The first things teens think of for their future are going to college and getting their first car. But, let’s say there’s a well educated thirteen-year-old, raised in a low-income family, who has plans on going to college. There’s no way their family can support him to go to college, and its funds could be over-whelming. The only way they could go to college is if they started saving at an early age. Therefore, if they got a job at the age they were at now, they’d be on their way to college by the time they graduate high school. Or, another example would be, if a teen wanted to get their first car on their sixteenth birthday. As you may know, many teens don’t get things handed to them on a silver platter, so they’d have to buy that car themselves. They might be old enough to drive, but they just turned the legal working age. Once they get a job, they’d have to wait at least a year to have enough money for the car as well as its insurance.
It is currently increasing in incidence at an alarming rate. Unemployment among young people is increasing predominantly as a result of youth receiving inadequate preparation for the job market and a largely ignored discrimination against youth in the job market. In order to minimize levels of youth unemployment, the education system and current workforce practices need to be analyzed and modified. The education system should be modified so that its degrees and more in line with jobs that are actually available and offer more job experience opportunities. The workforce practices should be modified so that discrimination against youth is minimized as much as possible. This can be achieved through invoking a higher rate of jobs awarded through meritocracy and reducing the amount of informal hiring. It is only after the integration of many of these concepts that youth unemployment levels will decrease. This will be a step towards a world with less inequality and unemployment, a step towards a better
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.
Table 2 shows that the young adult’s unemployment rate (15.9%) is much higher than all labour force of both sex and 15 years over (8.5%) in Nov. 2009. Furthermore, young adult’s percentage of change unemployment (2.7%) is higher than compare group’s (-0.8%) from Oct. 2009 to Nov. 2009, which means young adult’s unemployment is still increasing while other groups’ unemployment began drop currently. Young adults are more likely to lose their jobs compared to others because of their limited work experiences.
Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased.
Mouhammed, A. H. (2011). Important theories of unemployment and public policies. Journal of Applied Business and Economics, 12(5), 100-110.
Analysis of the labor market in the economy reveals a reduction in vacancies while the number of job seekers significantly increases over the past few decades (Dickerson, 2008, p.1). Particularly, the youth employment looks worrying with a serious downward trend with so many of them unemployed. The numbers of free people who are full educated or trained have also decreased. The unemployed in the economy are either inactive or unemployed. The annual changes continue to show a rise in unemployment of young people both for student and others. With lack of government employment as well as training programs, many individuals opt to seek for self-employment (Dickerson, 2008, p.1). Statistic continues to show that there has been an increase of workless people in comparison to the vacancies available. The general picture, therefore, remains that labor market constantly fails to meet the needs of people regarding employment. Although this is the case, there has been some variation across regions with Scotland and Wales in the UK showing decreased performance. There remains a risk that employment will increase in the coming years. The present concern is long-term unemployment, specifically with regards to the youths who are most disadvantaged in the labor market (Dickerson, 2008, p.1).
The rate of unemployment for the 18 – 31 age groups nearly doubles that of the next age group comprised of their senior cohort. According to the U.S. Census Bureau, 63% of the stated young adult age groups were not employed in 2012, with this being the highest percentage in forty years (2012). Most parents have a very strong influence on the course of the career their children choose to follow. Finding employment that will support a household with established debt from college and other growing expenses has proven to be a real challenge.... ...
Unemployment issue can lead to a lot of impacts to the economic growth. Higher unemployment rate will lead to increase government borrowing. When people are without their job, they would paid less in the income tax. So, it will cause a drop in tax revenue because there are lesser people paying income tax and spending less. Due to the loss of earnings to the unemployed, the government need to spend more subsidy for them in housing benefits and income support.
One of the most life changing effects of unemployment is the loss of income. Especially if they are a single parent of if they have a large family to support. Having no money means eventually having no food, no clothes, no shelter, and no car. It also prevents one from doing many things and activities, even though their amount of leisure time has increased. One might not have money to go to the movies, play on sports’ teams, or do any other recreational things. Being unemployed for a long enough time leads to a lot of debt. Any money that has been saved ends up getting spent rather quickly with all of today’s living expenses. Twenty thousand dollars may seem like a lot of money to some people, but with no income that money gets spent before you know it.
Unfortunately, there are many Americans out of work in today’s current declining economy. Unemployment can be defined as a person who is out of work involuntary, not by choice. These people are looking jobs and available to start work. Being unemployed can be disheartening and deciding what the next step is can be challenging. Underemployed can be described as being inadequately employed, such as a low-paying job that requires fewer skills than one possess. (Daly, Hobijn, and Kwok 2015) Making ends meet can be difficult for one who has been affected by this economy over the past few years. America still has a high unemployment rate since the decline of the current job market. And many Americans are struggling to establish the skills needed for employment, or the underemployed are force to lower they skill to make a profit. America’s economic status has force the underemployed and unemployed to make ends meet with the current jobs available. And last but not least some have also utilized these difficult times to venture into new discoveries to make life hassle free. So, we wonder is Americans giving up in today’s economy or do they settle for lower end job to establish a steady income to make ends.
Sometimes we do not realize that there are many economic factors that prevent us from getting a job. In 2012, the Bureau of Labor Statistics carried out a report taking in mind Americans under 30 who had graduated from college in 2011. Although the paper did not clarify between full-time and part-time workers, around 73 percent did have a job and more than 11 percent were still trying to find one. According to a study released by the Department of Education in 1994, 87 percent of university graduate students had a job, either full or part-time. Another 8.4 percent had returned to school, so basically they were out of the job market altogether.
Youth unemployment is a global problem facing both developed and developing economies. The United Nations define youth unemployment as individuals between the age of 15 and 24 years not employed and actively seeking employment. Statistics only consider youths who have attained the required age of employment who are willing and able to work but without jobs. Unemployment rates raise concerns in all economies. However, the rate and trends vary from one country to another irrespective of the country’s development status. For instance, in Cuba, Sierra Leone and Germany, youth unemployment rates were below 10% as per the year (Petersen & Mortimer, 2011). Sierra Leone is a developing country while Germany is a developed country yet their youth unemployment rates are comparable. On the other hand, youth unemployment rates in South Africa, Armenia and Spain were above 50% as per the year 2010 (Petersen & Mortimer, 2011). In most countries, youth unemployment rate is more than double as compared to an unemployment rate in people above the age of 24 years. Canada is not an exemption as the youth unemployment rate is raising major concerns. In the recent years, issues of youth unemployment have dominated political debates and social forums. More and more youths are leaving institutions of higher learning to end up being jobless. A considerable proportion of the youths are doing jobs that are below their level of educations. Organizations are raising standards in jobs where jobs previously performed by high school leavers are being given to diploma and degree holders. Since 1966, general unemployment rate has averaged at 7.75%. As per April this year, the unemployment rate among the youths was 14.5%, w...