Introduction
Unemployment is one of the fundamental economic and social problems in the world. Every country once in a while experiences a lack of working places available on the labor market. It could be said that unemployment rate is constantly changing, as it depends on the variety of social and economic factors. It could be assumed that unemployment is a critical issue in the United States of America, as it has a strong impact on the society and other spheres of everyday life.
Firstly, the essay provides the definition of unemployment. Secondly, it describes a current situation regarding unemployment rate in the United States of America. Thirdly, it focuses on the explanation of reasons for this phenomenon. Fourthly, negative and positive consequences and effect of unemployment on American society are discovered. Moreover, possible solutions to the problem are discussed. Lastly, the conclusions are made.
Definition of Unemployment
Unemployment could be defined as an amount of people, who are not involved in any working activities (Gupta 334). However, it has to be mentioned that this definition is vague and unspecified. In order to give a clear understanding of the term a vehement categorization has to be made, as it will help to avoid ambiguity. Firstly, people have to be divided into two groups, as employed and unemployed, where people who are not eligible to perform work tasks such as pensioners and children are excluded (Gupta 334).
The second step is to categorize potential workforce into two groups, such as employed and unemployed (Gupta 334). However, one more distinction has to be made. The unemployed people are divided into two more groups such as involuntary and voluntary (Gupta 334).
It could be concluded that the definition of unemployment includes only a rate of voluntary unemployed population, as other people are considered irrelevant to this phenomenon. Moreover, it could be said that the categorization is necessary, as it helps to avoid ambiguity and confusion while defining the term.
Current Unemployment Rate in the United States of America
It could be said that high unemployment rate is one of the most important issues, which the United States currently experiences (Tong, Tong, and Tong 75). It could be said that some people, who are not able to find a job increased due to the situation in the world.
However, it could be said the situation regarding unemployment has changed over past several years. It has been noticed that the unemployment rate decreased to 5.4%, as American employers introduced 223,000 job offers in April 2015 (Schwartz par. 2). However, the wages were not dramatically increased due to the decrease in the unemployment rate. Some conservatives claim that delay in salary’s increase occurred due to the weak economic condition of the country and insufficient Obama’s actions (Schwartz par. 8).
American economists predict the unemployment rate will significantly drop by the end of the year and may be lower than 5.4% (Schwartz par. 18). However, it has to be mentioned that a number of people, who are obliged to take part-time jobs, remains high (Schwartz par. 19). It could be concluded that the situation on the American market is relatively better now. However, changes have to be made in order to improve a current condition of the unemployment rate in the United States of America.
Reasons for Unemployment in the United States of America
One of the primary reasons for high unemployment in the United States of America is a financial crisis (Tong, Tong, and Tong 75). The economic recession causes problems for job seekers, as many enterprises experienced bankruptcy during these years. Moreover, a current situation will remain unchanged, as there are many factors, which have a dramatic influence on it, such as competitive pressure from Europe and China and expensive health care system maintenance (Tong, Tong, and Tong 75).
Another cause of unemployment is “the US government’s neoliberal policies” (Li 218). It could be said that these governmental actions are the primary causes of severe financial conditions, which lead to the increase of unemployment rate in the country. The main goal of neoliberalism is to create “asset bubbles” (Li 218). Despite positive intentions, the creating of ‘bubbles’ leads to structural unemployment, and destruction of any of them leads to the global financial crisis.
Imports to exports ratio is another aspect, which has a strong influence on the development of the high unemployment rates. In case of the United States, a number of imports significantly outnumbers the exports (Tong, Tong, and Tong 75). This factor creates the imbalance in the American economy, weakens a position on the global market, and increases external debt and unemployment rates.
It could be said that all of these factors have a substantial impact on the American economy. However, a combination of all aspects dramatically increases the unemployment rate, as a high correlation between these phenomena can be noticed. Evaluating factors together helps see a full image of the current situation in the United States.
Consequences of Unemployment in the United States of America
It has to be mentioned that unemployment has not only negative but also positive impacts on American economics. Firstly, it has to be mentioned that a rise in unemployment increases the level of proprietorship in the society (Gohmann and Fernandez 289). American economists have noticed this consequence and actively utilized it to decrease the unemployment rate. The main reason for the popularity of this approach is the fact that proprietorship reduces unemployment by creating new job offers (Gohmann and Fernandez 289).
Firstly, the entrepreneurship occurs, when individuals are unable or experience difficulties while seeking for a new job offer (Gohmann and Fernandez 289). Consequently, they have to establish new businesses and enterprises. In turn, this fact leads to a creation of new products, innovation development, and an establishment of new vacancies. It could be concluded that the unemployment leads to the development of entrepreneurship, which, in turn, leads to the reduction of unemployment.
As for the negative effects, unemployment has an adverse impact on the psychological state of an individual. As basic psychological and social needs such as well-established everyday routine and ability to financially support family members are not satisfied, one experiences negative attitude and depression (Hoye and Lootens 85). It could be said that a person lives in constant stress and feels hopeless until he/she is able to fix this problem.
Unemployment also has adverse effects on the family establishment and social roles. A high interdependence between a rise in unemployment and an increased divorce rate is noticed (Dolen, Weinberg, and Ma 172). Children are the ones, who experience violence, and an amount of attention paid to children has to be increased during seasons of high unemployment (Dole, Weinberg, and Ma 172).
It could be said that this economic phenomenon has an adverse impact on family formation and relationship between its members. Moreover, violence might be a cause of mental and physical trauma among children, and might be a reason for social isolation in future.
Possible Solutions to the Issue
There are several solutions to a problem such as a high-quality training, introduction of new jobs, and development of favorable economic and social conditions for the companies (Hong, Hong, and Hong 76). These actions will help to improve a current negative situation on the labor market and provide people with positions. Moreover, a combination of these factors will create favorable conditions for development and sustainability of the enterprises to avoid a high unemployment rate in future.
Lastly, improvements in American political and economic structures have to be made. These changes will help enhance a global reputation. Moreover, the advancements and innovations will help avoid a similar issue in the near future.
Conclusion
In conclusion, it could be said that the situation regarding the unemployment rates has experienced changes in a positive direction. It is not as high as it was before due to the introduction of new job offers. Possible reasons for unemployment were economic and political actions implemented by the government of the United States of America. It might seem that unemployment has only negative effects on society. However, the proprietorship is one of the positive influences of unemployment, which helps create new job opportunities. Furthermore, a current situation is unfixed, as advancements in governmental policies may help decrease the levels of unemployment in the country.
Works Cited
Dole, Willemijn, Charles Weinberg, and Leiming Ma. “The Influence of Unemployment and Divorce Rate on Child Help-Seeking Behavior about Violence, Relationships and Other Issues.” Child Abuse & Neglect 37.2-3 (2013): 172-180. Print.
Gohmann, Stephan and Jose Fernandez. “Proprietorship and Unemployment in the United States.” Journal of Business Venturing 29 (2014): 289-309. Print.
Gupta, Gypuzur. Macroeconomics: Theory and Applications, New Delhi: Tata McGraw-Hill Publishing Company Limited, 2006. Print.
Hoye, Greet and Hanne Lootens. “Coping with Unemployment: Personality, Role Demands, and Time Structure.” Journal of Vocational Behavior 82.2 (2013): 85-95. Print.
Li, Jinhua. “Analysis of High Unemployment Rate in the USA.” World Review of Political Economy 4.2 (2013): 218-229. Print.
Schwartz, Nelson. “U.S. Economy Added 223,000 Jobs in April; Unemployment Rate at 5.4%.” The New York Times 8 May 2015. Web. 25 Aug. 2015.
Tong, Carl, Lee-Ing Tong, and James Tong. “High Unemployment in the United States: Causes and Solutions.” Competition Forum 10.2 (2012): 74-79. Print.