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Structural unemployment short essays
Causes of unemployment in economics
Causes of unemployment in economics
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Recessions and recoveries throughout the years seem harder to comprehend each time. This is because of the complex issues that must be resolved during them. The issue no longer just lies with unemployment. One must keep in mind, housing prices, taxes, demographic issues, inequality ratios and the reason for unemployment. A fix all policy is not a possibility with this recession and recovery. As we continue throughout this recovery and continue to make resolutions we must understand what the root causes are and how to avoid them in the future.
During a time of recession people try to figure out what the root cause is for unemployment. “There are now 12.8 million workers who are looking for work and cannot find it; the figure nearly doubles if you include workers who are part-time but want to be employed full-time, and workers who want to work but have stopped looking” (Rampell 1). Two options come into play these are, structural unemployment and cyclical unemployment. Structural unemployment is caused by changes in the economy like the technological revolution or moving jobs abroad. With the technological revolution, one sees a computer and one operating person taking the job of many who once did it manually. In addition, due to the scare of the recession many companies cut their pay rolls and invested in technology to insure in the future the success of their business. Businesses also moved production abroad so products could be made cheaper than in America. Structural unemployment is more challenging to fix because it require matching of people’s skills they have been trained, higher education and progress. Structural is not a permanent problem, like seen during World War II the G.I. Bill was introduced turning around the stru...
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...n the recession is hard to understand is because the diverse actions that must take place to create a solution. We can’t just recycle the same policies like the New Deal again we must be able to adjust and fit it to today society.
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Rampell, Catherine. "New York State Leads in Income Inequality." New York Times Economix 20 Sept. 2012: n. pag. Web. 15 Feb. 2014.
The Economist. “Inequality and the American Dream”. They Say I Say. Gerald Graff, Cathy Birkenstein, Russel Durst. New York: W.W. Norton & Company, 2009. Print.
This paper aims to discuss the Short-Term and Long-Term Impacts of the Great Recession and
"Wealth Inequality in the United States." Wikipedia. Wikimedia Foundation, 18 Apr. 2014. Web. 19 Apr. 2014.
Throughout the years, “ U.S income inequality has been increasing steadily since the 1970s and now has reached levels not seen since 1928” (Source A).
"How the Great Recession Has Changed Life in America." Pew Research Centers Social Demographic Trends Project RSS. PewResearch, 30 June 2010. Web. 14 Mar. 2014.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
The business cycle is the short-run alternation between economic downturns and economic upturns (Investopedia n.d.). A recession is an economic downturn and happens in every country and some recessions are worse than others and the output of GDP and employment are falling farther and faster. The great depression lasted from 1929-1933 and was a deep prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment started to rise (Krugman & Wells. 2012). The next recession lasted from 1981-1982 and was comparatively smaller than the first (Krugman & Wells. 2012). More recently in 2001 a slump in the economy was noted and was followed by the great rescission of 2007-2009 (Krugman & Wells. 2012). Recession is defined as a “period of at least two consecutive quarters (a quarter is three months) during which the total output of the economy shrinks” (Krugman & Wells. 2012). In the United States the National Bureau of Economic Research (NBER) is assigning the task of determining when a recession begins and the NBER looks at a variety of economic indicators such as employment and production (Krugman & Wells. 2012). Every business cycle recession has a negative impact on the economy the recession’s deferrer on the strength of the impact on the country. Consider the two charts for Figure 21-5 of the more recent recessions of 2001 and 2007. The Recession of 2001 did not last as long as the recession of 2007 and did not have as much of an economical hardship on the business cycle and as shown 2007 dipped greatly in industrial production. In the second chart it demonstrates a recession at the point the economy turns from expansion to recession or the business-cycle peak. Then in the char...
Price, Mark. “The Increasingly Unequal States of America: Income Inequality by State, 1917 to 2011.” Economic Policy Institute. N.p., 19 Feb. 2014. Web. 30 Apr. 2014
Mui, Y. (2013, January 29). Housing emerges as economic bright spot after years in the
Income inequality in the United States, as of 2007, has reached levels not seen since 1928. In 1928, the top one percent received nearly 24% of all income within the United States (Volscho & Kelly, 2012). This percentage fell to nearly nine percent in 1975, but has risen to 23.5% as of 2007 (Volscho & Kelly, 2012). Meanwhile, in 2007 (see
“A Guide to Statistics on Historical Trends in Income Inequality.” cbpp.org. Center on Budget and Policy Priorities, 2013. Web. 06 April. 2014. .
Sutter, John. “What is income inequality, anyway?” CNN. 29 Oct. 2013. Web. 13 Feb. 2014.
In Oklahoma City, Forbes regarded them as the most “recession proof city in America” last 2008. The magazine reported that the city had falling unemployment and is one of the strongest housing markets in the country with a solid growth in energy, agriculture and manufacturing. But whether it has been regarded as such, recession basically still has after effects. It is still making things tough for job seekers to marke...
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want to work and can work according to the current pay they can get for a job they chose to work as. There are four major types of unemployment: frictional, structural, cyclical and seasonal unemployment.
Daly, Mary, Bart Hobijn, and Joyce Kwok. 2015. “Jobless Recovery Redux?” FRBSF Economic Letter 2015-18