Unemployment Rates in the US
S. Unemployment is the state where people have no jobs and they are willing to work. This is mostly a social issues. Most countries are affected by this social problem because of the less economic activities going on in these countries that can accommodate all the growing population that have a willingness to work but they cannot find any employment anywhere. This scenario has been identified to hit very many countries and the United States of America is no exception to this social menace. million people in the united states who are considered unemployed, this is according to the research that was done in the year 2011 (Mutikani, 2017). Based on the number that are being thrown around many political figures have been seen to use this issue to discredit those that are in power on how they are not doing their work to cub this menace United states of America have had so many issues that have caused unemployment rate to rise up.
The factors that lead to rise of unemployment in the US can be categorized to be either domestic or international (Mutikani, 2017). But a lot of unemployment has been caused by recession periods over the years and government policies that have been implemented that have caused collapse of different industries that have made people to be laid off of work. Economists like Laura Tyson have explained that in the recent past what the US has been facing that was creating so many joblessness is the deficit that exists between the jobs which in this case she states that it has s been created by the gap that is existing among the job markets. Another cause is frictional unemployment this happens mostly when the workers are making job transfers (Soergel, 2017).
When an employee moves from one job to another may create a frictional unemployment. And the third one is cyclical unemployment, this happens in the event that there are no enough sales of the goods that have been already produced so the industries cannot get other employees to work for them because they have no money to pay them. There are several negative effects that unemployed in the US has caused. For social lives unemployed in the US has brought so many poor quality of life to the families that their head of the families are unemployed (Soergel, 2017). Most the rate of unemployment grows at the time recess (Mutikani, 2017). After which a survey is done and when the percentage is more than six the government steps in to try to stabilize it by creating jobs through altering the aforementioned policies.
The Federal Reserve is the one that is tasked to make sure that in this case scenario there is provision of less strict rules to the commercial banks so that they can borrow money and spend by investing in different projects that can induce economic growth and hence creating more jobs in the process for the people (Mutikani, 2017). The central bank instructs the commercial banks to lower the interest rates so as to allow people to borrow and increase their disposable income (Soergel, 2017). Another way is to deal treasury bills and bonds. job growth rebounds sharply, unemployment rate falls to 4. percent. Reuters. Retrieved 25 July 2017, from http://www. reuters.
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