For over half a century, American manufacturing has dominated the globe. During this
period, many great American businesses and corporations began. Companies like General
Motors, Levi, and Ford became widely known and promoted. American manufacturing became
synonymous with quality, greatness, and reliability. However, manufacturing in the U.S has
started to plummet as the economy has begun this recession. It may seem as if the country that
used to make everything is really on the edge of making virtually nothing. U.S. jobs in
manufacturing have been vanishing at a fast rate and unemployment percent is on the rise, but
despite the vanishing jobs Americans’ productivity is on the rise and Americans still lead the
world in manufacturing.
An important economic concept that is raised in this article is unemployment. The percentage
of U.S. workers employed in manufacturing has dropped from 16.5% in 1987 to 10.8% today.
In January, 207,000 U.S manufacturing jobs disappeared, which is actually the largest month
drop since 1982. Most rec...
robots have been sold in the last two years. Employment is going down while productivity is
The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States.
In recessions of the past the American worker was laid off with the impression they would be rehired as soon as demand for goods and services were presented again. Now people in jobs from computer programmers to telephone operators are losing their jobs and never returning to the same field again. The big issue here is that if we continue outsourcing specific jobs overseas we could erase a whole industry of job opportunity from the American people. Economists say the framework of the U.S. labor force has been changed due to past outsourcing of jobs by this country. The more outsourcing that continues the more our job force’s structure will change. As a result, the American worker can no longer wait to be rehired into the same job or profession. Using their time while unemployed, Americans are retraining themselves and attempt to step into an entirely different career.
John sits at home each night with his wife and two children and watches the news. He listens as experts on the economy tell him that the economy is growing and that the GDP is growing. He wonders how this can be, because he lost his job months ago and has not been able to find work since. Has the very country that John lives in moved on and left him behind? This is the question that many Americans are asking themselves, and many more will be soon. In the 1960s and early 90s productivity in America increased by record amounts. The nation was prospering, people had jobs, and they were spending their money. All of this was done by simple government intervention. Now America is looking at another rise in productivity, but this time it may be a little bit different unless the government takes the proper steps.
During the Great Recession as well as the Great Depression, many individuals were left unemployed. Due to the Great Recession, employment had fallen “14.6 percent, from December 2007 to June 2009” (Goodman and Mance 4) in the manufacturing industry. During the Great Depression, unemployment rates reached a high of about 23 percent among Americans (Samuelson paragraph 7). Although the unemployment rate of the Great
It was said that once-in-a-century advances in technology are transforming our economy. The computer chip is doing for today's knowledge economy what electricity did for our industrial economy a century ago. Synergies in technology are driving acceleration in productivity growth that enables us to grow faster with less inflation. Economic progress is speeding up; the speed limit is rising. “Real GDP growth has averaged 4 percent for the past four years, with declining inflation. This almost doubles the 2 percent to 2.5 percent not long ago considered the maximum noninflationary potential. But we've been growing faster than potential and sustaining the unsustainable for four years and counting. Sounds odd, doesn't it? Our faster output growth is based primarily on faster productivity growth and secondarily on faster labor force growth”. Productivity growth now appears to be at least 2.5 percent and rising. An increase from 1 percent to 2.5 percent is an increase of 150 percent, a huge jump with profound implications if sustained. Last year was encouraging. Productivity raised over 3 percent for the year and over 5 percent in the second half. It was said that the United States entered the 21st century with its economy on a roll. GDP growth averaged more than 3 percent a year in the 1990s. The country created 17 million jobs, driving unemployment down to a 30-year low of 4.1 percent. In the 1999-2000 the economy wasn’t doing so bad the unemployment rate was down, there were more jobs available, and production was doing well. When 2001 stated and even before then the economy was going down, many people were being laid off and so on. Then it happened the September 11th attack on the US, this attack has left the
...he rise, as record numbers of workers have left the workforce due to various impediments to employment, many of which have been brought about by our own government.
First, I will discuss the time period between 1973-1974. Because the unemployment and inflation rates are higher than normal, we can assume that the aggregate-demand curve is downward-sloping. When the aggregate-demand curve is downward-sloping, we know that the economy’s demand has slowed down. When the economy’s demand has slowed down, businesses have to choice but to raise prices and lay off workers in order to preserve profits. When employers throughout the country respond to their decrease in demand the same way, unemployment increases.
...r monetary or resource value to get the basic needs of the family met. Jobs are falling. Klotz points out those jobs are hard to come by for many people, especially the younger generation she talks about, being the 20-24 age groups (Klotz 3). Asher Miller, executive director of the Post Carbon Institute writes in his forward, “an estimated 16.5 percent of the population is officially classified as “underemployed,” the highest level since the 1930s” (Heinberg and Lerch xiv). There is no way to provide for a family; shelter, food, water, clothes, education and healthcare without a job unless you rely on the government for full support. Even that is limited in what it provides. Lack of jobs is a negative indicator of progress and growth. Even worse is the tragic combination of no jobs and dwindling resources to provide jobs, food, and energy for all of the nations.
Deindustrialisation impacts the western world in a widely negative way, during the past 25 years, employment in manufacturing as a share of total employment has fallen dramatically
Now that the United States has changed from an industrial based economy to a more service oriented economy, it means that our economic revenues are now primarily comprised by the prevalence of intangible assets, provided by services and technology for example, and less by tangible assets by means of physical labor in factories and other manufacturing industries. Because of this change, industrial production and output have been experiencing a major falloff as jobs in factories, farms, and mines that were once plentiful, are being eliminated, while jobs in the growing services sector, such as in technologies, telecommunications, and entertainment are experiencing a massive growth.
recent years it has only gone down a tenth of a percent. This may be one of the
The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.
The unemployment rate became a hot topic in the past few months when it rose to
A 2014 Oxford study found that the number of U.S. workers shifting into new industries has been strikingly small: In 2010, only 0.5 percent of the labor force was employed in industries that did not exist in 2000. The discussion about humans, machines and work tends to be a discussion about some undetermined point in the far future. But it is time to face reality. The future is now. (UPI Top