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In July 2009, unemployment figures stood at sixteen percent of white youth, twenty-one percent of Hispanic youths, and thirty-one percent of black youths (Janoski, Luke, & Oliver, 2014). Other estimates that include people who are no longer seeking employment due to discouragement, and those who are underemployed measure at twenty-one percent of the aggregate national unemployment rate. Same as unemployment, underemployment has unequally distributed cases among the youth, women and black employees.
Unemployment refers to a situation where people are ready and able to work, but there is no employment for them. There are different forms of unemployment. It can be Structural, Frictional, or Cyclical. The extent to which unemployment affects the nation is shown by the amount of attention given to the monthly Employment Report put out by the Bureau of Labor Statistics. The subject that tops the list is unemployment. Statistics on unemployment do not only show the level of employment but also show how satisfied or dissatisfied the citizens are with the government and their leaders. Widespread and lingering unemployment has dire consequences not just for the nation’s economy but also for the unemployed.
During the recession, the unemployment rate hit the ten percent mark. Layoffs were also on the rise. However, layoffs are not the primary causes of unemployment. The factor which drove the unemployment rates so high during the recession was the lack of creation of new jobs. In the 2001 recession, employers shed two and a half million jobs in six quarters more than in the 2009 recession (Janoski, Luke, & Oliver, 2014). The reason for this is the significant drop in the rate of jobs creation. The downfall of the housing bubble, the credit crunch, and unfavorable economic policies made the country less attractive to entrepreneurs. The poor business climate also discouraged business owners from expanding. As the level of job creation falls, while the
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