Unemployment in the USA - Research Paper Example

Unemployment in USA Introduction and Thesis ment Unemployment is defined as a situation a person who is able and willing to work and is actively seeking a job but is unable to find any. Unemployment rate is defined as the total number of unemployed persons in the country divided by the total number of the labor force. The main objective of this research is to identify the measures of unemployment in USA and to examine the challenges faced by the unemployed people in the country. Moreover, the research will seek to establish the disadvantages of unemployment in USA as well as identify the causative agents of unemployment in USA. In addition, the research will seek to identify the various benefits and disadvantages that are brought about by unemployment in USA. Body and Analysis Unemployment in this case is described as a state of a person who is able and willing to work at the available rates and is actively seeking a job but is unable to acquire an income-generating job. Unemployment is always accompanied by unemployment rate. Unemployment rate is described by economists as the total number of unemployed persons in the country divided by the total number of the labor force (Rappaport 5). Unemployment can be defined depending with the different circumstances that underlie the situation. The United States is one of the countries that face a high unemployment rate in the world as compared to other European countries such as Germany, United Kingdom, and France. This research paper seeks to ascertain the level of unemployment in USA. Moreover, the researches will establish the disadvantages of unemployment in USA as well as identify the causative agents of unemployment in the country (Rappaport 5). Unemployment is a situation that occurs when people are willing and able to work and cannot find a job. This research is confined to unemployment in the USA. The research will focus on factors that cause unemployment in USA and the increasing trend towards unemployment in the country (Hornstein and Thomas 8). Moreover, it will focus on the challenges facing unemployment in USA as well as suggesting possible solutions for the factors identified. Unemployment situation occurs when a person who is actively seeking for a job is unable to obtain a job. Unemployment is often used as a measure of the health of the country, commonly known as unemployment rate. Unemployment rate is the total number of unemployed persons in the country divided by the total number of the labor force. When an economy is undergoing recession, the rate of unemployment is usually very high. Recent statistics shows that more than 200 million people in the world remain unemployed due to various conditions. This is the highest number of unemployed people to have ever been recorded (Rappaport 5). Various causes have been developed regarding unemployment in USA. Such causes include, cyclical or Keynesian unemployment causes, frictional unemployment causes, structural unemployment causes and classical unemployment causes. Other causative agents of unemployment in USA are seasonal unemployment, hardcore unemployment causes, and hidden unemployment causes (Hornstein and Thomas 8). This research is confined to unemployment in the USA. Unemployment will focus on factors that cause unemployment in USA and the increasing trend towards unemployment in the country. Moreover, it will focus on the challenges facing unemployment in USA as well as suggesting possible solutions for the factors identified. USA has had a good history of creating employment opportunities for its citizens. The country has had the largest numbers of graduates in the world thus providing the best type of labor for its public and private companies. One of the main causes of unemployment in the USA is real wage unemployment causes. This type of unemployment occurs when the real wages for the available job are set high over the market clearing level therefore causing the number of job seekers to increase and thus exceed the number of available vacancies. Such causes have played a great role in destabilizing the market equilibrium (Mullins 7). Many economists have also argued that the job market in USA is a subject of cyclical unemployment. This form of unemployment is also known as deficient demand unemployment. According to previous research, this form of unemployment in USA occurs when the level of aggregate demand in the economy is not sufficient to provide jobs for everyone who needs a job (Hornstein and Thomas 8). In such a case, demand for goods and services, falls below the expected levels. The cycle in this case happens in that that level of production will reduce because of decreased demand for goods and services. This also means that few worker s are needed to produce the goods and the level of wages will reduce (Garcilazo 7). This will also reduce the number of people willing to work at that rate and thus results to mass unemployment. Moreover, unemployment in the USA is a result of neo-classical concepts. In this case, people are dismissed from their work involuntarily and are not able to find acceptable new employment. In addition, the USA has had a disparity between the expertise of the jobless workers and the expertise desirable for the existing jobs. This causes the labor market not to be able to provide a job for everyone who wants one (Mossakowski 5). According to the National Department Of Labour Statistics (Web), the rate of unemployment in the country has dropped in forty-one and the District of Columbia of the fifty states in USA. According to Bureau of Labor Statistics (Web), six states and Puerto Rico all increased the rates of unemployment, while six states experienced no change for the month of September 2012. While compared to the previous year, the rate of unemployment has increased in 44 states including Washington DC and Puerto Rico. In the entire country, the rate of unemployment has decreased by 1.2% as compared to the year 2011. In the month of September 2012, the national rate of unemployment dropped to 7.8% down from 9.1% compare to September 2011. The rate of job growth increased in 35 states, which increased the growth of the economy. The state that had the highest decrease in unemployment rate was Texas, which saw more than 21000 jobs created. The state was closely followed by Pennsylvania, which had a margin decrease of unemployment by 17,800 jobs. Washington DC also had a large decrease in unemployment by more than 14,200 jobs. On the contrary, the states with the largest increase in unemployment were Michigan, Ohio, and Oregon, which lost 13,000, 12,800 and 7,900 jobs respectively. September 2012 State Unemployment Rates *       State Rate   State Rate  Alabama 8.3   Montana 6.1  Alaska 7.5   Nebraska 3.9  Arizona 8.2   Nevada 11.8  Arkansas 7.1   New Hampshire 5.7  California 10.2   New Jersey 9.8  Colorado 8.0   New Mexico 6.4  Connecticut 8.9   New York 8.9  Delaware 6.8   North Carolina 9.6  D.C. 8.7   North Dakota 3.0  Florida 8.7   Ohio 7.0  Georgia 9.0   Oklahoma 5.2  Hawaii 5.7   Oregon 8.7  Idaho 7.1   Pennsylvania 8.2  Illinois 8.8   Puerto Rico 13.6  Indiana 8.2   Rhode Island 10.5  Iowa 5.2   South Carolina 9.1  Kansas 5.9   South Dakota 4.4  Kentucky 8.4   Tennessee 8.3  Louisiana 7.0   Texas 6.8  Maine 7.6   Utah 5.4  Maryland 6.9   Vermont 5.4  Massachusetts 6.5   Virginia 5.9  Michigan 9.3   Washington 8.5  Minnesota 5.8   West Virginia 7.6  Mississippi 9.2   Wisconsin 7.3  Missouri 6.9   Wyoming 5.4 Source: U.S. Dept. of Labor, Bureau of Labor Statistics (BLS) * Preliminary figures from BLS. Conclusion In conclusion, various causes have been developed regarding unemployment in USA. Such causes include, cyclical or Keynesian unemployment causes, frictional unemployment causes, structural unemployment causes and classical unemployment causes. Other causative agents of unemployment in USA are seasonal unemployment, hardcore unemployment causes, and hidden unemployment causes. Works Cited Bureau of Labor Statistics. 2012 Budget for the Bureau of Labor Statistics. New York: Bureau of Labor Statistics , 2012. Web. Garcilazo Corredera. "Regional Labor Markets, Unemployment, and Inequality in Europe." The University of Texas at Austin, 2006. United States -- Texas: ABI/INFORM Complete. Web. 9 Nov. 2012. Hornstein, Andreas, and Thomas A. Lubik. The Rise in Long-Term Unemployment: Potential Causes and Implications. Richmond, United States, Richmond: Federal Reserve Bank of Richmond, 2010. ABI/INFORM Complete. Web. 9 Nov. 2012. Mossakowski Krysia . "The Influence of Past Unemployment Duration on Symptoms of Depression among Young Women and Men in the United States." American Journal of Public Health 99.10 (2009): 1826-32. ABI/INFORM Complete. Web. 9 Nov. 2012. Mullins, Steven D. "The Unemployment Impact of the 2008 Extension of Unemployment Insurance: As High as Robert Barro Suggested?" Econ Journal Watch 9.1 (2012): 3, n/a. ABI/INFORM Complete. Web. 9 Nov. 2012. National Conference Of State Legislatures. Labor & Employment. New York: Bureau of Labour Statistics, 2012. Web. Rappaport, Jordan. "Why does Unemployment Differ Persistently Across Metro Areas?" Economic Review - Federal Reserve Bank of Kansas City (2012): 1-31. ABI/INFORM Complete. Web. 9 Nov. 2012. Read More