Research Paper 1
The state of an individual having no work and is actively seeking work is what is referred to as unemployment. The measure of unemployment denoted in percentage is deduced by dividing unemployed persons with people already in the workforce. The United States has recorded a decline in the rate of unemployment. In April 2014, the rate cut down by 0.4 % to 6.3%, which is the lowest value, recorded in the nation since end year 2008. (Levy. 36) (See appendix 2). The survey by the Central Intelligence Agency states that unemployment cut down by 5.9% for adult males and by 5.7% for adult females. The highest gainers were teenagers whose unemployment cut down by 19.1%. (Central Intelligence Agency. 195). The number of individuals who lost jobs, temporary or permanently also decreased by 253,000. (See appendix 1).
There exists an unclear point on what causes unemployment, its effects on the economy and the appropriate remedies to it. Levy in his book argues that market mechanisms and market practices are the major factors that contribute to unemployment. He also argues that market reforms are the most suitable means of reducing unemployment. (Levy. 58). The argument centers against external forces on the employment market such as high taxes, unrealistic work rules, bureaucracy in the work place and other regulatory mechanisms that discourage the hiring of workers or the settlement of workers in the long term. The Central Intelligence on the other hand centers its argument on the government and economic status as the main cause behind unemployment. The intelligence body states that government involvement on the health of the economy will highly contribute to cut down the rate especially at times of recession.(Central Intelligence Agency. 300). Although this is a different perspective to economists who state unemployment levels rise when the government interferes and attempts to assist in creating jobs.
There are various forms of unemployment and all forms have their specific remedies. Voluntary is whereby an individual personally refuses to be employed. This form of unemployment is also commonly known as “frictional” as it depicts an individual’s character to refrain from working creating a sort of friction between an individual and work. Its remedy is full attitude turn around. Classical occurs when the number of vacancies is less than the number of job applicants. Its remedy lies on creation of workspaces to counter the number of job applicants. Cyclical occurs when the economy is on a flat slope and there is no great demand in it to create work spaces foe every individual seeking for work. In other words, cyclical unemployment occurs in periods of recession where workers even tend to lose their jobs due to job cuts rather than extend their work contracts. This form of unemployment has no specific remedy as for a state to come out of recession many factors have to be considered.
A steady decline
is noted in the United
States since 2008 as the nation struggled to
come out of the economic recession. It is also seen that economic factors
highly influence unemployment but cannot be stated as the main root of
unemployment. Production capabilities, level of education and other factors
also greatly contribute to unemployment. An economic survey has to be carried
out time to time to assess the economic health of a state, education levels
have to be increased and general public awareness has to be emphasized to lower
unemployment to zero percent. A healthy economic means a higher demand for a
productive labor force increasing work opportunities. Public awareness will go
along way in changing the views of people not looking for a job. Unemployment
is a symptom which if not paid attention to will lead to full establishment of
The World Factbook 2008. Washington D.C: Potomac Books, 2008. Print.
Levy, Frank. A Detailed Analysis of
Youth Unemployment Statistics: Final Report. Washington, D.C: Urban Institute, 1980.
(Retrieved from Bureau of Labor Statistics)
(Retrieved from the Los Angeles Times)