Unemployment in America Unemployment in America As of the unemployment rate in the United s has once again jumped over 9%; and it is even higher in the Washington State reaching the levels above 10% in the King County (Robin, 2011). The government should take effective steps to address unemployment as it affects not only the individual but also the household, the society, and ultimately the country alike. A proper understanding of the intensity of the issue will enable us to overcome the adverse condition. The unemployment rates stands for the percentage of labor force that is unemployed.
It is a tool through which we can measure the economic health and determine the economy’s growth rate. On the process of United States’ economy slowly recovering, hundreds of jobs are still being lost in almost all streams. There are many factors that constitute in evaluating how the economy is doing; and one of the important factors is the unemployment rate of the nation. Besides, within the aspect unemployment rate there are different factors that determine the rate. The actual rate of unemployment is difficult to measure, but rates often seem to decline and incline easily and swiftly.
As the U. S. economy is recovering, it is still influenced by the prevailing unemployment rates. The impacts of unemployment are dropped over all areas of the economy. When the people are out of their job, they have little deposable income which prevents them from buying nonessential goods and services. As the demand for such products and services goes down together with lower spending by the consumers, forces the firms to cut costs on their attempt to stay afloat.
One of the best ways chosen by the firms to cut down the expenses is to lay off more workers, resulting in a seemingly endless cycle. This creates a drastic situation where more and more people are laid off, leading the society into economic downturn and ultimately causing severe economic depression in the country. Outsourcing is one of the major reasons for unemployment in America. A report cited on CNN by a labor expert documented about 48,000 U. S. jobs being lost monthly due to outsourcing to other countries (Unemployment in America).
Another reason for the workers to lose their job is they are not updated to the technology. If they are not equipped with the current technological skills they are thrown out from their position. Still others are out of their job due to jobs moving overseas. Besides, some suggests that illegal immigrants working for less than $10 an hour are the cause for increasing unemployment rates. The congress thinks that there are 12 million illegal immigrants working by taking the jobs of American citizens. The Bureau of Labor Statistics reports the need for better employment strategies as those who are unemployed and jobless are no longer capable of supporting the economy.
The figures of the statistical analysis are high and need to be brought down. At this situation, American Treasury secretary John W. Snow has formulated employment strategies to overcome the traumas of unemployment. The plan is to create about 200,000 jobs per month in order to make up for the huge pile of 3 million jobs lost since 2001. Economists suggest that the governments must take the steps to create at least 150,000 jobs monthly to keep up with population growth on the process of strengthening the job market.
However, President Barack Obama has given hope for the future by taking right actions in time. He has decided to extent the unemployment benefits for those who are in need (Unemployment in America). With the collaboration and team work of each one in the country, these objectives must be reached to overcome the unemployment problems. Also steps must be taken to provide incentives to the outsourcing companies to keep the jobs within the U. S.
Americans should work together for achieving the goals as the country’s financial affairs are so low at this point. References Robin, M. (July, 8, 2011). ‘Unemployment Rate Still Over 9 Percent’. Care 2 Make a Difference. Retrieved from http: //www. care2.com/causes/unemployment-rate-still-over-9-percent. html Unemployment in America. Articlesbase. Retrieved from http: //www. articlesbase. com/business-articles/unemployment-in-america-666722.html Bureau of Labor Statistics. Household data annual averages. Retrieved from http: //www. bls. gov/cps/cpsaat24.pdf