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.
However, this move is not always a wise one because when an enterprise has fewer workers it would reduce its productivity which would mean more financial problems. Besides it strains the workforce. If these corporations continue incurring losses they eventually close down and as a result, the workforce loses jobs. This is what has been going on since December 2007. Unemployment is one of the biggest problems that governments have to deal with. (compston 2002).
The end of the year 2007 marked the beginning of the great recession. When recession began about 4.9 % of the population had no jobs. Over the years, increase in youth unemployment has been on an increase. By the end of 2008, the worst impacts of recession were eminent. During that year, about 2.6 million people were rendered jobless. This was recorded as the worst hit year in more than 60 years. More than half a million jobs were lost by the end of 2008. In 2009 the rate of unemployment rose to 7%.By last year, the rate had grown to 9.8%. Nevada used to be the best state financially. However, at the moment its unemployment is rated at 14%.
By the year 2010 there were about si...
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...he range of options that one can have. Instead of looking for jobs in other enterprises, one should consider self employment. One can never lack something constructive and financially profitable if he or she looks hard enough. Savings may also help during rainy days.
Recessions would always be there. It is how best governments, businesses and the people are prepared for them that matters.
Works Cited
Compston Hugh. 2002. The New Politics of Unemployment: radical policy initiatives in Western Europe. Routledge.
Heide shierholz. April 2, 2010. www.epi.org/publications/entry/jobs_picture_20100402/
Nagle M. Jeanne. 2009. How a Recession Works. The Rosen Publishing Group.
Periton Paul, Adams Steve. 2007. CIM Learning System Fundamentals of Business Economics. Butterworth-Heinemann.
Webster O. yehudi. 1993. The Raciarization of America. Palgrave Macmillan.
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.
As an illustration, Michael Grabell speaks about signs of recession in March 2009; and how the recession consumed many states across the United States in the fall of 2008. Employment rates were decreasing, Unemployment rates were off the charts and there were many house foreclosures. Furthermore, in Krugman’s Economics for AP* it goes more into depth about the signs of recessions and house foreclosures which can be seen in Module 2. Here, it talks about the many signs of recessions-- inflation, deflation and labor force, which is the total amount of people that are employed and unemployed. In addition to, which they are vigorously looking for work but are not currently employed. Moreover, a few modules ahead Krugman’s textbook also talks about what some individuals did to survive the recession. For instance, Home foreclosures caused tax revenues to plummet. Not to mention, how at the same time more people sought Medicaid and food stamps to survive the recession.
The lack of employment at this time is due to the lack of money to invest and expand, and as a result output is greatly reduced. However, nowadays, unlike the past 20 years, credit is now available much more easily for companies through banks and building societies so not as many employees are affected by structural unemployment. Demand deficient unemployment is caused by a lack of demand. Keynes believed that unemployment had more to do with the goods market than the labour market.
"Macroeconomics/Employment and Unemployment." Macroeconomics/Employment and Unemployment - Wikibooks, Open Books for an Open World. N.p., n.d. Web. 04 July 2017.
...actually a pretty good number for the economy though it was so long ago. Then during the year of 2010, the unemployment rate actually got worse rising to 10% where it is now 6.60% going down quite a bit.
In addition to the negative consequences in developing countries, it also has negative consequences in the US. Not only is there a loss of jobs domestically, it also effects individuals who still have jobs in the US. When there is an increased supply of workers companies are able to both pay less and require more qualified personnel. According to Lawrence Mishel, of the Economic Policy Institute, an additional supply of workers is one of the primary factors of the wage stagnation experienced throughout America (n.
In 1929, there was a huge event that happened in America, which called the great recession. As we know, the great recession causes a lot of negative effects not only on the American economy, but also on the world. Nowadays, although most of the economists do hardly predict recessions in the US, the past record still provides America with a little comfort. A new research indicates that the next giant recession would come soon. According to the online article the America’s vulnerable economy by printed edition, several effects have involved in accounting for this coming recession. Those effects are in terms of housing bubbles, debt bubbles and lower customer purchasing power.
My brother had a really good job, but because the company had financial problems they had to go several people go, and my brother was one of them. It was really hard for him to find a job, he was jobless for about a month. My brother had to go to another town in order to find a job. This topic is also interesting to me because I see how not having work experience can also affect you. I have applied for almost every job, but because of my lack of work experience it is very hard for those companies to hire you. I want to see how Las Vegas is dealing with the unemployment rates, are they only hiring people with an excellent work history? Or are the companies not hiring at all in order to maintain their sales. Because of all of those reasons, I decided I wanted to write my paper on the unemployment rate in Las Vegas
According to Livermore (2008), people who are actively looking for work but are not currently in a contractual arrangement are considered unemployed. Since the recession in 2007, unemployment has been an ongoing problem in America. Many companies were laying off thousands of employees because they could not pay them. As of September 2011, the South and the West has the highest concentration of unemployment. Nevada has the highest jobless rate, 13.4%, followed by California with 12.1% (Cooper, 2011). The collapse of the housing bubble left Nevada with high rates of unemployment. South Carolina’s unemployment rate is 11.1% and is the fourth highest in the nation (Cooper, 2011). Most people had a hard time finding work because they were not familiar with filling out applications online; especially if they had been working for 30 years at the same company (Alpert, 2011). The labor market is governed by the laws of supply and demand. There are policies that address labor supply and labor demand.
Unemployment generates from people who do not have a job. They could be laid off, have gotten fired, or could be in between jobs. It is important to know that unemployment counts people who are able to work. It does not include people that cannot work due to disabilities, or acts along those lines. During a recession, the economy normally experiences a very high unemployment rate.
The effects of prolonged unemployment went from lowered health and living standards, to protests, and general anger at the current state of affairs. This high unemployment rate was brought on by the economic backwash caused by the Great Depression. The depression took the wind out of the sails of British commerce. It lowered the expectations of common people and made them question the system under which they lived.
Mouhammed, A. H. (2011). Important theories of unemployment and public policies. Journal of Applied Business and Economics, 12(5), 100-110.
The most common causes of unemployment are getting fired and layed off for specific reasons. People might get layed off if a company is going out of business or maybe if there are positions in the company that are no longer needed. It’s difficult to find a job right away after being fired. Companies don’t want to hire someone who has just been fired for reasons such as failure to do a sufficient job, not showing up to work, stealing, etc. It’s also hard to find a job instantly after being layed off. In some cases the economy is down and it is hard to find any work in general.
Lower GDP for the economy also one of the consequences of unemployment in current time. High rate of this issue implies the economy is operating below full capacity and inefficient so that it will lead to lower output and incomes. Because people who are searching for their work usually will spend less in purchasing goods and
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.