Position Paper Escalating Unemployment Rate in America Your al Affiliation Escalating Unemployment Rate in America Unemployment rate in United States is has reached 9.1 percent in September 2011 as the U. S. Bureau of Labor Statistics reported. The number of unemployed labor in United States is seized at 14.0 million in August and has changed little since April this year (TradingEconomics, 2011). The economy seems to be stagnant with the two months of about no growth. Moreover, a grand total of jobs created in United States in August, for the first time since 1945 is, zero (as cited in Brownfield, 2011). This position paper argues that unemployment rate in United States has escalated and reached over 9 percent in 2011 despite the predictability of such economic condition stemming from recession 2007-2009. According to US Bureau of Labor Statistics, from 1948 to 2010, unemployment rate remained on an average scale of 5.7 percent, reached at highest level of 10.80 in Novermber-1982 and a lowest level of 2.5 percent in May-1953(as cited in Trading Economics, 2011). In 2011, US unemployment rate touched over 9 percent rate again, with even higher rate of over 10 percent in Washington state (King County) (Robin, 2011). The recession 2007-2009 proved to be the greatest labor market meltdown since the Great Recession in United States.
Since then, three major indicators of long-term unemployment rates persisted until 2011. Permanent job destruction rate increased to 4.5 percent in late-2009.New job opening rate declined from 3 percent (2006-7) to 1.6 percent during 2009.Hiring rate fell from 4 percent (2005-6) only to hold at 3 percent since mid-2008(Howell & Bert, 2011). Continuous increase in unemployment rate in US seems predictable; however, there is an evident lack of adequate measures from government.
A recent CNN/ORC poll revealed that 65 percent of Americans disapprove of Obama’s policies for economy (as cited in Brownfield, 2011). Moreover, Hill reported that even White House has downgraded the prospects of a bright economic future of United States. By considering the economic upheaval of these two months, administration anticipated at least 1.7 percent economic growth in comparison to the last year’s rate. However, it is far below the rosier idea of 2.7 percent growth, projected in February (as cited in Brownfield, 2011). Brownfield (2011) argues that considering 0.7 percent annualized economic growth during first half of the year, the fact is that even 1.7 percent growth rate is exceptional (Brownfield, 2011). However, this economic situation was not unpredictable since Congressional Budget Office’s mid-year assessment (based on data till June 2011 and unaware of the recent decline) on United State’s economic situation and budget fore-casted that by the end of 2011, unemployment rate can decline to 8.9 percent.
However, it will stay above 8 percent up to 2014(Brownfield, 2011). The research evidence reveals that the recent economic stagnation and escalating unemployment rate was predictable and persisted from past.
The situation could have been better if dealt with cautiously. Government must take adequate measures to lower unemployment rate to the least possible and avoid such persistence in future. Works Cited Brownfield, M. (2011, September 2). Morning Bell: Zero New Jobs in America. [Web log]. Retrieved from http: //blog. heritage. org/2011/09/02/morning-bell-zero-new-jobs-in-america/ Howell, R.D. , & Bert, M.A. (2011, May 6). Unemployment Benefits and Work Incentives: The U. S. Labor Market in the Great Recession. Retrieved from http: //www. peri. umass. edu/fileadmin/pdf/working_papers/working_papers_251-300/WP257_revised. pdf Robin, M.
(2011, July 8). Unemployment Rate Still Over 9 Percent. Retrieved from http: //www. care2.com/causes/unemployment-rate-still-over-9-percent. html TradingEconomics (2011, September 2). U.S. Employment Stagnated in August. Retrieved from http: //www. tradingeconomics. com/united-states/unemployment-rate