Unemployment in the U.S.A
One of the primary macroeconomic goals is the employment of all factors of production or the minimization of unemployment (Welsh & Welsh, 104). Unemployment rates in the U.S.A have been fairly constant in the past six years. Research shows that the rate of unemployment in the country ranges from about 5.1% to 5.6%. This rate of unemployment has managed to stay stable over the past years despite the increase in population in a country so big and also the great recession that has greatly affected the whole of U.SA. Over the past few months, and for the first time after a long time however, there have been great changes in the unemployment rates in the country. Despite the efforts of employers to create more job opportunities and to hire more people, the rates of unemployment in the U.S increased in thirty states.
There have been many reasons put forward to explain the reasons why the economy in the U.S is rising yet employment rates seem to be going down. Among these is the fact that due to the rise in the country’s economy, there seem to be more and more people seeking employment. The number of people actively looking for employment are therefore more than the jobs available and the jobs that are created and as a result a number of people end up being unemployed. In July only for example, the rate of unemployment rose to 6.2%.
Unemployment is one of the greatest problems suffered by a number of economies in the world. It is a problem that is common to both the developed and the developing economies and it is responsible for a lot of economic vices in the world. There different types of unemployment and these are classified according to their causes. The most common types of unemployment include Structural unemployment is unemployment due to structural changes due to the economy that eliminates some jobs and creates others for which the unemployed are not qualified (Arnold, Rodger,127). If this occurs to certain local areas of an economy, it is known as regional unemployment.
Cyclical unemployment is another type of unemployment. In this situation, there is a recession in aggregate demand and this causes the unemployment. This recession can either be long term or short term. If long term, it causes demand deficit or Keynesian unemployment. Other types of unemployment include seasonal unemployment where the produce is distributed at certain times of the years and therefore before the season for the produce to be distributed arrives, there is unemployment and frictional unemployment whereby workers are searching for jobs among others.
The current cases of unemployment in the U.S.A are best explained using two types of unemployment i.e. regional and frictional unemployment. Regional unemployment in that, the rates of unemployment in the U.S.A is not even distributed in the country. Different states in the country have different rates of unemployment. For instance in the month of July, Mississippi had the highest rate of unemployment at 8%, followed by Georgia at 7.8%. The state with the lowest rate of employment was North Dakota at 2.8%. This type of unemployment is common in the country because of the different types of economic activities that each state takes part in.
Seasonal unemployment can also be discovered in the U.S. This occurs mainly because of the different seasons the country experiences. As a result, production and distribution of certain goods and services may stop during some months of the year due to a decrease in the demand for the products. This is caused by the changes in tastes and preferences due to changes in seasons. Unemployment in the U.S can also be explained using frictional unemployment in that as research shows, a majority of the jobless in the country are people who are actively seeking employment.
In the U.S.A, unemployment has not been as big an issue as it is in a number of other countries. This is because of the ever increasing job opportunities and the good education system in the country. Resolving unemployment issues in the country is also not a very big deal. Thanks to innovation and the low rates of unemployment, it is very possible for the rates of unemployment in the country to drop even lower.
Arnold, R. A. (2010). Economics (With Video Office Hours Printed Access Card). South-Western Pub
Welch, P. J., & Welch, G. F. (2009). Economics: Theory and practice. Hoboken, N.J: Wiley