Employment Situation in the US - Case Study Example

There is a strong relationship existing between unemployment and inflation. Both these aspects are likely to affect the citizens of the country to a large extent. Inflation generally relates to the abnormal increase in the price of commodities whereas unemployment is associated with situations whereby people lack adequate job opportunities. Thus, both these aspects affect the people in economic terms by hampering their earning opportunities (U.S. Bureau of Labor Statistics, “Employment Situation”).

Cyclical unemployment can be estimated to be very difficult to overcome in comparison to other types of unemployment. It is very difficult to overcome as it encompasses large numbers of candidates who are willing to work but are unable to get proper employment. Cyclical employment is prevalent in almost every country whereby people with proper talents and potential are unable to find a suitable job (U.S. Bureau of Labor Statistics, “Employment Situation”).

While calculating the unemployment rate, all the factors relating to unemployment of different age groups and both genders are taken into consideration with the help of separate calculations. It would be beneficial if the unemployment rate, as a whole, is calculated for deriving the exact rate of unemployment rather than basing the calculations on different aspects that may include different reasons for unemployment among different age groups and genders who are unemployed.

For creating more job opportunities in the US, the country would need to improve its economic stability. It is only then that the country can be able to provide better employment opportunities to deserving candidates. If the nation can increase its profitability by way of different business investments and other commercial associations, the nation would be able to curb almost all the issues related to unemployment to a very large extent.

Numerous issues can be observed as related to the unemployment levels in the US. Recession can be considered to be one of the primary reasons for the high rate of unemployment in the US. Recession is often acquainted with contraction in the investment and spending approaches taken by businesses which further lead to unemployment within the nation (U.S. Bureau of Labor Statistics, “Employment Situation”).

To overcome the issues related to the recession, the country can make Foreign Direct Investments (FDI) in other countries to increase its capital inflow levels. The nation can also enact policies for liberalizing imports and can focus more on exporting raw materials and finished goods to countries with significant demand for the same.

Through proper FDI the nation can gain a sustantial amount of income.
Liberalization of imports can help the country save on expenses.
More exports of finished products to other countries will provide greater aid in profit maximization to US-based businesses.
Nominal budget planning will enable the citizens to save extra expenses and in turn, will lead to a substantial increase in their profitability.
Cost cuttings will also lead to improved financial conditions and a lower rate of unemployment.
Revision of the fiscal and monetary policies of the country can lead to improved economic structure.