unemployment in the US

Name

Institution

Course

Date

Unemployment in the US

Introduction

Unemployment is a chief social problem that has affected many countries with America being no exemption. Joblessness or unemployment happens when people have no work and are actively seeking for work. The rate of unemployment is an assessment of the unemployment prevalence and is calculated like a percentage after dividing the current individual workforce and the unemployed people. When recession occurs, the economy faces a moderately high rate of unemployment (Haugen, David, 34). A report by international labor organization, about 197 million people or about 6 % of the workforce of the world were unemployed in 2012. Despite the fact that America is among the most urbanized nations, it has a considerable unemployment rate among its population. The essay will focus on the causes and measures of the unemployment rate in America and ways to reduce this rate.

Unemployment and job creation are barred by factors like global competition, economic conditions, automation, education, and demographics. These aspects may affect the employment duration, number of employees and the wage levels. The rate of employment grew consistently in the 1990’s, but due to the recessions faced in 2001 and 2008-2009, it has been unpredictable (Kennedy, Neale, 76). The people employed regained its peak from the 2007 recession in 2014. The job growth rate in the US has dwindled a bit in July, making the rate of unemployment rise unexpectedly, indicating a slack in the work market, which would prompt the Federal Reserve to lower the interest rates for sometimes. Despite the low growth rate of jobs in July, employment expanded a bit.

The rate of unemployment normally goes down during the times of economic prosperity and goes up during downturn, generating essential demands to the public funds as tax revenues falls and the cost of social security net rises (Haugen, David, 95). Polls point out that Americans consider job creation as the main concern of the regime, with their key resolution as not allocating jobs overseas. Unemployment is measured in various ways. An individual is unemployed when they are jobless and searching for a job, and vacant work. The rate of unemployment in the US in June 2014 was 6.1 %.

In conclusion, it is clear that unemployment in the United States is a chief social problem. As such, better policies and stringent measures needs to be placed by the government to help decrease the unemployment rate done by stabilizing the economy, reduction of taxes on businesses, and creation of a favorable environment, which promotes business in the nation. Jobless people in the country will engage in illegal acts like crime, which will only exacerbate the economy status of the country.

Work Cited

Haugen, David M, and Susan Musser. Unemployment. Detroit: Greenhaven Press, 2011. Print.

Kennedy, Neale. European Unemployment: Macroeconomic Aspects : Unemployment in the Eu and the Us : a Macroeconomic Perspective. San Domenico, Italy: European University Institute, 1997. Print.