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Poverty and/or Unemployment

The United States is regarded as the world superpower. Being a very developed and powerful country, the unemployment rate in US is very high which has affected the entire economy. The US Government is suffering from a number of problems and is unable to resolve these issues due to limited employment resources and continuous growth in economic uncertainty and instability (Valletta). The Unemployment Situation in the United States The United States Bureau of Labor Statistics recently conducted a household survey which revealed the following information with factual statistics:

1. In April, 15. 3 million persons were unemployed. The rate of unemployed persons was edged up to 9. 9% in April which was actually 9. 7% till March, 2010. 2. Among the groups of major worker, the rate of unemployment was edged up to 9% among whites; whereas, there was little or no change in the rate of unemployment in other groups of worker as follows:: a) 16. 5% blacks b) 25. 4% teenagers c) 8. 2% adult women d) 10. 1% adult men e) 12. 5% Hispanics f) 6. 8% Asians (not seasonally adjusted)

3. The number of unemployed labor force reentrants increased by 195,000. 4. The unemployed persons who were jobless for more than 27 weeks, increased up to 6. 7 million and the rate of same unemployed persons increased up to 45. 9% in April. 5. The unemployment rate of civilian labor force was 65. 5%. This resulted due to the massive rise of 805,000 labor force. 6. The marginally attached persons were 2. 4 million in labor force which is higher than 2. 1 million that was calculated last year.

These persons were available for work and endeavored for employment opportunities last year. 7. The number of discouraged workers was 1. 2 million in April which is higher as compared to last year’s calculation that showed 475,000 workers (Bureau of Labor Statistics). Reasons for Unemployment in the US The following are the major reasons for unemployment situation in the US which resulted partially due to people and partially due to companies: Unemployment through People: 1. The US population growth has resulted in an increasing ratio of unemployed persons.

Noticeably, the increase in population does not increase job opportunities; therefore, the increase in unemployment level is logically understood from such circumstances. 2. The younger generation prefers higher educational degree which restricts them from working due to intensive studies, thus, the unemployment level has further increased in this way. 3. Per hour minimum wage of $6. 55 have discouraged people from working because of their belief that more earning is possible by working at other places and as such, their non-undertaking of jobs resulted in an additional number of unemployed persons.

4. Many employment opportunities demand higher education and/or command over different certifications or trainings which are not attained by individuals and thus, people remain unemployed due to their lack of educational achievement (Valletta). Unemployment through Companies: 1. Fierce competition is faced by many US companies from foreign investors which causes low revenues, financial instabilities and results in firm’s closure after which, all company’s employees face unemployment situation. 2.

US companies endeavor to flatter its organizational structure due to their belief that this would help in efficient execution of operational activities. For flattering a firm’s structure, the services of many employees are terminated which, of course, increases the level of unemployment. 3. Many US firms have upgraded their production facilities through automation which involves the usage of machineries in place of people and the same results in an increase in unemployment situation which is termed as ‘Technological Unemployment’.

4. US firms deals with a number of seasonal products and services and of course, when seasons are over, people suffers unemployment conditions which is termed as Seasonable Unemployment. 5. US companies (like other countries) encourage multitasking employees which involves the performance of several jobs through one person that is actually performed by a number of employees and the same involvement results in unemployment situation for the rest of employees which eventually, increases unemployment rate in the US (Valletta).

Effects of Unemployment in the US The increasing rate of unemployment has affected the US with regard to poverty, mental health problems, political instability and crime. Even it has also reduced the good standards of health. In economics, it is a central issue to understand the existing forces for unemployment as well as to mitigate its unfavorable effects (Carnegie). Every job-seeker’s condition becomes worse due to joblessness.

The unemployed people usually suffer various problems which results in loosing direct contact with fellow employees, lacking of self-esteem, illness and mental stress and eventually, troubles in the payment of bills and procurement of luxuries and necessities which are deemed serious problems for people living with family due to their debts, obligations and the costs of medical that is usually provided by employers through health insurance. It was visualized by Dr.

Harvey Brenner that unemployment too results in the rate of suicides, crimes and affects health very badly because the incentives or payment received from US unemployment insurance, is not even equal to 50% of what could be earned in a job. Even the incentive is not even paid forever which results in trapping welfare programs like debts accumulation or food stamps. Additionally, another option of holding ‘McJobs’ which offer low-income, cannot be justified a good choice than welfare state’s insurance benefits which is provided to unemployed people. McJobs are generally undertaken by student and fresh candidates for short period of time.

Although, the unemployment insurance plan places unemployed people in the McJobs but the benefits, wages and chances for promotion are based on employer’s discretion which distracts unemployed workers in accepting such jobs which results in a sort of unemployment (termed as frictional unemployment). Moreover, social responsibilities and lack of financial resources force unemployed people to undertake jobs which do not match their talents and skills which are generally perceived as ‘underemployment’ (qtd in The Impact of Unemployment on Our Society, Helium).

Solutions to the Problems of Unemployment in the US In the light of above mentioned reasons and effects of unemployment, the following solutions will help in diminishing the unemployment rate in the US: 1. Education and Training: A comprehensive educational program should be introduced to diminish illiteracy among people which is one of the major reasons for unemployment condition. On job and off job trainings should too be provided which must contain special skills related to various seasonal jobs.

2. Internship / Studentship / Apprenticeship Programs: As students do not wish to undertake jobs while studying, they must be provided job-related opportunities in the form of internship, studentship or apprenticeship which contributes a small but reasonable amount of payment called ‘stipend’. This stipend will help students in meeting their basic needs and will, of course, provide an experience of job as well as ‘Program Certification’ that will surely help in getting employment. 3.

Jobs Database: The US Government should maintain an updated database of jobs which must contain all relevant information of existing jobs so that unemployed workers may be placed in the same vacant jobs immediately. This will also encourage and help the unemployed people in their jobs endeavors. 4. Unemployment Programs: These programs refer to ‘placing the right worker at the right place in accordance with their skills and talents’. This way of job placement encourages workers to continue their jobs for long time due to their expertise command over related job.

These programs also create job opportunities in accordance with the ‘skills of workers’ because all the skills cannot have excessive job opportunities and the provision of such ‘skills related jobs’ will help in reducing unemployment rate in the US. 5. Foreign Migration Reduction: The migration of foreign workers should be reduced or restricted which will provide the first opportunity of jobs to the US dwellers and the same will help in diminishing unemployment rate.

6. Work Sharing: The way of sharing work that is placing two or more employees on the same job position through shift-rotations and shared salary, will help in reducing unemployment condition (Bureau of Labor Statistics). Conclusion Thus, the rate of unemployment in the US has drastically increased and the same have resulted in the occurrence of various issues pertaining to crime, poverty, drug addiction and alcohol usage.

However, all these problems can be reduced up to maximum level by following the suggested measures and its continuous implementation will help in achieving the desired economic level for the entire United States (Carnegie). Works Cited Bureau of Labor Statistics, Economic News Release: Employment Situation Summary, United States Department of Labor, 7 May 2010, Web. 9 May 2010. Carnegie, Andrew, The Gospel of Wealth, Cincinnati, OH: Standard Publications, 2007. Valletta, Robert, Rising Unemployment Duration in the United States: Causes and Consequences, Federal Reserve Bank of San Francisco, May 2005, Web. 9 May 2010.

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