Unemployment in the USA
Because the unemployed workforce represents a so-called wasted potential production within economies of the USA, unemployment should be viewed as a significant concern within the sphere macroeconomics. Moreover, unemployment may be viewed as the central macroeconomic therat because the overall cost of unemployment is extremely high as this condition of joblessness among people has detrimental impacts on the government, companies, and, finally, unemployed people. The current paper aims to shed light on unemployment as a current macroeconomic concern that negatively impacts the economy and society in general. Moreover, much attention will be paid to the influence of unemployment on the U.S, economy. Finally, the paper will indentify, review, and, finally, assess several effective strategies that were and may be used by the government of the USA in order to combat this issue.
Description of Unemployment
Despite there are many definitions of the term “unemployment”, this process usually occurs when people who are actively searching for suitable employment are unable to find a job. According to the information provided by the Bureau of Labor Statistics, unemployment is a macroeconomic condition when individual who are physically and mentally healthy and are actively seeking job remain unemployed. Unemployment is a very important concept because with help of unemployment statistics the government usually measures the health of the entire economy. In other words, the researchers who explore the costs of unemployment claim that this process should viewed by the government as a universally negative process that threatens the economy of the country and society on individual and global levels. Many researchers differentiate negative psychological influences of unemployment on individuals, families, and the entire communities. For instance, the researchers Belle & Bullock who define unemployment as the most threatening life event claim that unemployment may lead to numerous negative psychological consequences on individuals and families.
The researchers believe that unemployment negatively influences not only separate individuals, but their families as well. Moreover, the authors present convincing statistics that failure of people to be hired is directly linked to mental and psychological health problems, increased mortality rates, unhealthy relationships within family members, poor psychological health and well-being of children, tension at home, losses of self-respect and self-confidence, increased amounts of suicidal cases, and unhappiness of people. In addition, unemployment has the power to influence people on community and societal levels as this negative condition of joblessness negatively affects standards of living of people, promotes violence and crime, causes significant losses of a valuable human capital, contributes to protectionism as well as xenophobia, and, finally, drastically decreases the average life expectancy of the workforce.
Finally, unemployed people usually suffer from poor access to housing, high-quality medical services, limited opportunities for further employment, and recreational activities of people. Thus, the researchers claim that unemployment contributes to the development of poor neighborhoods and unhealthy communities because it promotes social, cultural, and economic isolation and exclusion of people and communities.
Influence of Unemployment on the U. S. Economy
The researchers who investigate the threatening consequences of joblessness and its impact on the U.S. economy claim that long-term unemployment is associated with unemployment financial costs, economic recession, and, finally, reduced spending power of the employees. In general, unemployment makes the government face losses because the responsibility of the government is to provide financial assistance to the unemployed people. In addition, because of very poor purchasing or spending power, the unemployed have no opportunity to contribute to the economy of the USA because these individuals usually spend less. Finally, theorists who explore detrimental consequences of unemployment on the U.S. economy agree that long-tem unemployment leads to economic recession because it negatively influences the federal budget of the country.
Generally speaking, very high unemployment rate concerns Congress for numerous reasons because it not only puts at risk welfare of citizens of the USA, but also negatively affects the federal budget of the country. Taking into account the statistical data, in June 2009, the unemployment rate in the USA was equal to 9, 5 percent. Despite the U.S. unemployment rate has drastically decreased since that time, it remains relatively high even nowadays. High unemployment rate has many side-effects because it negatively influences economic activities in this country. Experts in the field of economics prove that unemployment negatively impacts the rates of growth of real GDP. In addition, the researchers who explore and measure the “side effects” of unemployment claim that long-term unemployment in the USA contributes to the declining income and consumption that threaten the economy of the country.
Strategies that Are and Should Be Used by the U. S. Government to Eliminate Unemployment
In order not to put at risk the welfare of the U.S. society and prevent the decline or, in other words, crash of the U.S. economy, American government puts efforts in order to decrease unemployment rate. With the purpose to eliminate the main causes of unemployment in the USA and create increased job opportunities for the unemployed workforce, the government of the USA relies on many effective tactics and strategies. First, because young people are the promising future of the USA, the government of this country creates increased employment opportunities for the youth. In other words, the U.S. government develops and implements effective policies that would considerably increase employment among young people. The increase of the youth exposure to jobs is the main strategy of the U.S. government that leads to positive outcomes. For example, the leadership of this country is aimed at promoting the likelihood that young unemployed individuals will have opportunities to find suitable careers that meet their needs.
Furthermore, the government promotes numerous internships, apprenticeships, various community projects, and job shadowing in order to give the chance to the youth to explore and assess that new jobs not only meet their needs but also exceed their expectations. In addition, considerable increase in minimum wages in the second effective strategy adopted by the government of the USA that is purposed to decrease unemployment rate in this country. This strategy is no less effective than the first one because it not only boosts wages and decreases poverty and inequality among people, but also increases purchasing power of citizens of the USA that encourages them to spend more money. Finally, according to the data provided in the CBO report, even small increase in minimum wages to no more than $9,00 reduced unemployment rate by more than 100, 000.
Having defined two effective strategies used by the U.S. government, I would like to add that improvement of skills of the human capital is one more effective strategy that should be adopted by the government of the USA because it will positively influence the flexibility and professionalism of the workforce. Moreover, encouragement of entrepreneurship and technological innovations is the second effective tactic that should be followed by the American government because this ‘anti-employment policy” will definitely promote the economic recovery of the country. In other words, this simple tactic will generate huge employment opportunities, attract attention of talented individuals willing to find a good job, and, finally, create new jobs for thousands of unemployed citizens of this country.
As a result, after having shed light on the term and nature of unemployment, clarified how this condition affects the U.S. economy, described two effective strategies how the U.S. government tries to eliminate unemployment, and, finally, defined two alternative strategies that should be adopted by the leadership of this country, it is possible to come to conclusions that in case the government continues to implement effective strategies to decrease unemployment and its negative consequences, current unemployment rate will drastically decrease. In addition, effective education policies and well-developed employment reforms will increase the amount of job opportunities for citizens of the USA that will positively impact the economy of the country and welfare of the community.