Size of the problem
The Great Recession of 2007-2009 affected many countries in the world. From an article written by Wall Street Journal columnist Gerald F. Seib, dated April 2, 2010, USA was one of the countries which were adversely affected. The biggest challenge associated with The Great Recession of 2007-2009 was unemployment (Seib, 2010).
Consequently, it is hard for the USA government policy makers and economists to come up with policies to re-employ the large number of long-term unemployed Americans. According to Seib (2010), the unemployment case in the USA is serious.
For instance, Seib says that 40% of those who lost their jobs during The Great Recession of 2007-2009 are in danger of losing their jobs altogether. These are likely to fall into the problem of long-term unemployed. This is in contrast to the case witnessed in 1982 where the problem only amounted to about 26%.
Issues contributing to the problem
From the article, Seib identifies a number of issues that contribute to the problem of the long-term unemployed. One of these problems is the housing crisis. Initially, people used to beat the problem of job loss by migrating to other regions.
By moving, these workers were able to get to areas where new jobs were being created. However, workers nowadays do not want to move because selling their houses before moving may not raise the amount they invested in those houses.
Additionally, the houses they migrate to may not be in the same excellent condition like their previous residence. Consequently, many people have chosen to remain at their present residence because of this housing crisis.
Mobility has been reduced due to the both spouses in the house working. Essentially, it means that if one of the spouses loses their job, then the remaining spouse still remains as the bread winner. As a result, such a family does not move to a new place.
However, there is hopelessness to those areas where people used to migrate to during times of job loss. For instance, Seib states that areas which were hotspots like Florida, Nevada, and California have jobless problems as a result of the housing crisis in the country.
A number of social problems could develop from long term unemployed. For an unemployed person who has been out of work for a long time, it becomes hard for them to get into the work force. This is especially in cases where such a person could find it hard get jobs which match their previous earning power.
Another social problem here is health related, and this could affect their education because of lack of funds. This is because their parents who are in a state of long-term unemployed cannot have their funds. This has adverse effects on the ability of such children to get employed in future.
Programs to address the problem
Programs that help people in long-term unemployment include giving them unemployment benefits. These benefits could help such people cope with the difficulties of unemployment.
More so, the Congress has instituted a bill which requires employers to hire workers who have been unemployed for two or more months. In exchange, such employers are given tax credits. These programs would go a long way in assisting these workers meet their daily needs.
Governments should formulate policies that cushion workers from the effects of any financial recession in future. Also, given the health problems that could result from long-term unemployment, there is a need for such people to be protected by government programs appropriately.
Seib, G. F. (2010). Long-Term Unemployed Cloud the Jobs Picture. Wall Street Journal. Retrieved from https://www.wsj.com/articles/SB10001424052702303395904575157730903699168