Unemployment within the US Unemployment within the US Judging by the current rate of unemployment of youths aged between 16-24 years, ten years can have a great impact on any sector. In the year 2001, the United States had one of the lowest rates of unemployment of those aged between 16-24 years. By then graduates used to emerge from their various institutions of higher learning and land employment opportunities, notably in areas of their specialty. Nevertheless, the current rate of unemployment among those who are between 16-24 years within the US is one of the worst in comparison to other developed nations.
According to input from the Bureau of Labor and Statistics, the current rate of unemployment among those who are aged between 16-24 stands at 16.1%. In as much as the rate can be said to have declined from 19.6%, which was the rate in 2010, stakeholders warn that the current figure is still high for a nation of the caliber of the United States. Similarly, stakeholders have traced the high rate of unemployment within this age group to have soured during the economic recession of 2007.
The main reason why unemployment rose then was the event that several experienced professionals found themselves out of employment for various reasons and competed for employment opportunities with the young ones who had freshly graduated from school. The Bureau of Labor and Statistics ascertains that in as much as some youths have landed employment within the last four years, unemployment is still of great concern not only for the Federal Government, but the State Governments as well (www. bls. gov). The state of Mississippi for example, with an unemployment rate of 23.1%, has the highest rate among those whose age groups range from 16-25.
An in depth analysis of the breakdown reveals that unemployment is similarly high in the state of South Carolina, with a percentage of 22.9% as well as Georgia, with a rate of 20.6%. Several surveys that have been carried out have similarly established that one of the reasons why the rate of unemployment is considerably high among this age group is the fact that the employment to population ratio keeps on declining.
The Bureau further reveals that over the last four years, the ratio of employment to population among this age group has registered a 7.1% decline from 53.1% to 46%. In like manner, the statistics reveal that well over forty percent of those who are employed from this age group take part in jobs that are not of their specialty. This leaves most of the graduates depressed notably because they have to find a source of income then began the process of repaying the loans they received in the course of undertaking their studies at the higher learning institutions. Several surveys that have been carried out have ascertained that for those who belong to the age group to be fully employed thereby reducing the rate of unemployment, well over four million job opportunities have to be created.
Similarly, stakeholders advice that for the rate of unemployment to reduce, fiscal policies put in place by the government need to be re-evaluated. The major reason as to why re-evaluation of the fiscal policies is advised is that it is the best possible mechanisms through which the government can reduce unemployment while at the same time encouraging economic growth of the nation (Freeman et. al 2000, p 124).
The Federal Government loses many funds due to unemployment. The loss comes in the sense that the unemployed are not in apposition to pay tax. Similarly, they lack the funds to help them through their activities, meaning that they are not in a position to spend on the goods and services as witnessed among the others. The overall effect is that businesses are denied the opportunity to expand. Whenever consumers and the public are required to pay much money in the form of tax, they end up with dented pockets, thus, unable to buy goods and services as required.
The overall effect of this is that businesses do not make the desired profits. Once the businesses do not meet the set objectives, the chances of hiring a new set of workers are so low. As a matter of fact, some citizens may end up losing their jobs majorly because several organizations are working towards reducing costs. It is therefore imperative for the Federal Government to consider reducing the amount of money submitted by people in the form of taxes.
This would spur economic growth notably because the citizens would be having money to help them satisfy their goods and services, thereby increasing returns for the business ventures (Mains 2011, p 83). The aspect of the business ventures meeting the goals and target set makes them consider expansion, thereby recruiting more employees and in the process reducing the level of unemployment amongst those who fall within such an age group.
The Federal Government should similarly consider re-evaluating the policies that govern the manner in which it spends. Notably, it should work towards increasing the funds that are channeled towards building and construction of various organizations. The new organizations would no doubt create more job opportunities and in the process reduce the rate of unemployment. Once several people are employed, the Federal Government would no doubt collect tax, which it would in essence use to provide good and amicable services to it citizenry. The only mechanism through which the rate of unemployment can be reduced is through creation of new job opportunities.
It is anticipated that a three percent increment within any economy can help create roughly about 150,000 employment opportunities. Similarly, experts warn that when the rate of employment constantly remains at about seven percent, then that particular economy is not good enough to create more jobs. To this effect, the government can consider altering the monetary policies. Such moves include according the citizens the opportunity to borrow funds at low interest rates. When such a move is put into perspective, both families and businesses are allowed to borrow loans cheaply.
When the families borrow the loans, they are better placed to get the items that they need thereby satisfying all their needs and requirements. This normally ensures that there is money floating within the economy for the businesses to register profits hence consider expansion. At the same time, when the businesses borrow cheaply, they are better placed to expand and bring on board a larger workforce to help it achieve its set objectives. In as much as re-evaluation of both the monetary and fiscal policies can come in handy in reducing the rate of unemployment thereby providing job opportunities to several people, the entire process is associated with several risks (Maynard et. al 2011, p 239).
Experts warn that if both the monetary and fiscal policies are not properly regulated, the Federal Government can end up with much debt. Concerning Fiscal policies, when the amount of tax is reduced, the government is likely to receive reduced revenue. This would force the government to fail to provide for its citizenry or go into debts so as to provide for their citizenry.
The same applies when it comes to the monetary policies, when people as well as businesses are allowed to borrow money at low interests, the government is likely to collect less revenue and this can as well land it in debts as it attempts to provide its citizens with the desired level of services. The confusion comes carries on when experts attest to the fact that making such policies is a tough call, but in the end, the positive attributes would outweigh the negative.
This is because those who shall have gained employment shall pay tax comfortably, implying that the debts will only be felt for a long duration. Over and above, the cost of living is too high. In fact, sections of the citizens are completely unable to provide themselves with the basic needs like food, clothing and shelter. In the recent past, it has even become so difficult for a section of the citizens to provide their children and families with the required level of education and healthcare services.
The positive effect in all that is the event that people live with the hope for a better tomorrow. This is accomplished by channeling most of their effort towards educating their children, for they believe that the American dream is on the horizon. The society should similarly play its role and ensure that it brings out the best of each individual. References CHRISTOV, D. S., & MACDONALD, R. B. (2000). How to tackle unemployment: a review of various programs aimed at reducing unemployment. Sofia, Bulgaria, Heron Press. EBBINGHAUS, B. (2006).
Reforming early retirement in Europe, Japan and the USA. Oxford, Oxford University Press. http: //rave. ohiolink. edu/ebooks/ebc/0199286116. FREEMAN, R. B., & WISE, D. A. (2012). The Youth labor market problem its nature, causes, and consequences. Chicago, University of Chicago Press. http: //site. ebrary. com/id/10216995. GOTTSCHALK, J. (2005). Monetary policy and the German unemployment problem in macroeconomic models theory and evidence Berlin, Springer. http: //public. eblib. com/EBLPublic/PublicView. do? ptiID=302224. MAINS, D. (2011). Hope is cut: youth, unemployment, and the future in urban World. Philadelphia, Temple University Press MAYNARD, D. C., & FELDMAN, D. C. (2011). Underemployment psychological, economic, and social challenges. New York, Springer.
http: //dx. doi. org/10.1007/978-1-4419-9413- 4. WAGNER, H. (2000). Globalization and unemployment: with 24 tables. Berlin [u. a.], Springer. Bureau of Labor and Statistics, http: //www. bls. gov/