The reduction of the unemployment rate is logical as changes have affected the labor market. According to Hall (2017), stock trends largely determine the number of jobs, and some benefits of current policies in this direction are obvious even despite a slow rate of decrease. Also, modern working conditions often imply a full social package, which is an additional incentive for many unemployed. Thus, the opportunity to get health insurance and paid leave is a key factor for many citizens. As Bahmani-Oskooee, Chang, and Ranjbar (2018) remark, preferences regarding working areas and attitudes towards unemployment are different in various US states, which can be attributed to the development of sectors of the labor market and employment opportunities.
Concerning debts on loans, too open system of bank lending to the population can be an additional factor causing this problem. At the same time, the situation affects not only individual citizens but also large financial institutions, many of which also experience difficulties. According to Liu and Pogach (2017), “when capital is tight, foreign lending comes at the cost of domestic loans” (p. 151). In other words, the sphere of crediting cannot be considered purely civil since it is closely connected with state financial affairs. People’s large debts on their home loans can partially be explained by an open and free system, as well as the shortage of financial resources, which can be caused by ill-conceived financial policies. Accordingly, the banking sector suffers losses because some people cannot pay their debts, which is often caused by too little family budgets. Perhaps, revising the state lending policy will help to solve this urgent problem.
References
Bahmani-Oskooee, M., Chang, T., & Ranjbar, O. (2018). Testing hysteresis effect in US state unemployment: New evidence using a nonlinear quantile unit root test. Applied Economics Letters, 25(4), 249-253.
Hall, R. E. (2017). High discounts and high unemployment. American Economic Review, 107(2), 305-30.
Liu, E. X., & Pogach, J. (2017). The effect of foreign lending on domestic loans: An analysis of US global banks. Economics Letters, 156, 151-154.