Sports and Entertainment Management - Essay Example

This paper portrays the current situation of unemployment in the United States and the best way to handle the problem using various economic models. The paper also looks at the government and monetary policies put in place in attempt to fight against the problem. The US unemployment problem has been raising recently attracting attention to both the Federal Government and private investors. Strategies to fight the problem are currently in place to freeze the increasing percentage of unemployment rate in the global economic leader.

Despite the fact that the US is the largest economy in the world, global economic pressures and bad economic policies could be the major causes of the employment problem currently facing the country. A recent household survey indicated that the unemployment condition in the United has risen by 0.1 per cent in May 2013 to 7.6 per cent. The situation was however worse in October 2009 than it is currently. Compared to the rate of unemployment in 2009, the situation had fallen to 2.4 per cent but it is now rising according to recent surveys (The US Department of Numbers 2013).

Article tackling Unemployment Guardian News and Media Limited. 2013. US jobless claims rise modestly as economic growth revised down. Retrieved June 24, 2013, from http://www.guardian.co.uk/business/2013/may/30/us-jobless-claims-economic-growth This article by the Guardian News and Media Limited points out that regardless of the US economic growth with a modest 2.4% this year, there is still a significant rise in the number of Americans seeking for jobs indicating the current unemployment increase from 338,000 five years ago to the current 354,000.

The article postulates that most employers are now steadily hiring, making an average of 208,000 jobs available every month different from the previous reported statistics of 138,000 in the recent couple of months past (Guardian News and Media Limited 2013). With this statistics, it is observed as positive adjustment towards employment, which leaves unemployment down fall from 10% of the year 2009 to the current 7.5%. However, this decrease is as result of many people especially the youth has given up seeking for jobs and the government will count one as unemployed if he/she is actively looking for employment.

Government spending continues to be the major area of weakness to US economy with also other as global weakness and higher taxes. Notably, economists assert that decline in the economy is not as severe as many people may think. Home construction is top performer in the economy growth which itself is growing at a double digit of 12.1% (Guardian News and Media Limited 2013). There is increased hiring in the private sector reduced prices in consumer goods and recorded high stock gains that maintain consumer spending high.

Increased demand in consumers has prompted businesses to faster restocking rate indicating growth in business inventories. . Discussion Unemployment is normally treated as a short-term economic phenomenon, which affects fluctuations. The problem is often neglected in neoclassical growth models. Fiscal policies, which can be explained as an economic components initiating effect on one of the various components of aggregate demand, has a different effect on both GDP and employment. This happens when making application of the Keynesian demand-driven models or the Neo-classical supply driven models (Magnani 2013 ).

Differences arise when dealing with problems associated with low economic growth and high public debts (Magnani 2013 ). The US has been working hard t ensure a minimum public debt and initiate mechanisms and strategies for job creation. Efforts of the US government to create