The school board had a cause to fire this secretary because her behavior could harm the reputation of this educational organization ( High school secretary fired, 2011, p. 12). Moreover, by tolerating such actions, school administrators could set wrong examples for the students.
An employment contract is frustrated when one of the parties is not able to meet its obligations. For instance, one can speak about such circumstances as terminal illness, death, imprisonment, severe injury, and so forth.
While determining reasonable notice, companies should focus on such aspects as the age of a worker, the length of employment, the health of an employee, and the availability of jobs in the community.
The main benefit of working notice is that business administrators can use the services of an employee and derive extra value from his/her performance. Yet, some drawbacks should be considered.
In particular, a disgruntled employee, who has access to confidential information, can use these data to harm the company. Moreover, people can act in a retaliatory way while serving the working notice. If there is such a risk, businesses should not prefer this option.
The workers duty to mitigate means that he/she should seek comparable employment in the industry. In other words, this individual should take steps to reduce the impact of wrongful dismissal on him/her.
Such a notion of constructive employment means that an employee quits his/her job because working conditions have become intolerable. In this case, one can speak about such issues as the hostility of other employees, violation of employment contracts, or poor working conditions. In this case, an employee owes the duty to mitigate the damages. In other words, he/she should also seek employment.
A wrongfully-dismissed employee can receive such termination damages as lost pay, compensation related to emotional distress, attorneys fee, or the costs of searching for a new job. In other words, this person should be compensated for the losses that occurred as a result of wrongful dismissal.
several strategies can be used to avoid wrongful dismissal claims. At first, businesses administrators should accurately document every incident related to an employees performance. This documentation can later be used to show that a person was not fired without a good cause. Secondly, it is necessary to develop clear rules which show what is expected from a worker.
While providing references to an employee, the representatives of a company should disclose information about any wrongful or illegal act committed by a worker. Yet, at the same time, business administrators should remember the risks of a defamation lawsuit filed by a former employee. Additionally, they should not disclose confidential information to avoid legal conflicts.
Employee insurance can be offered to a person if he/she can meet certain requirements. For instance, one can speak about the failure to find a job due to the factors that are not dependent on an employee. Secondly, it is necessary to mention such events as sickness, childbirth, or the need to support a close relative.
The article Wrongful Dismissal Made Easy written by Milena Celap (2011) includes instructions that help employers avoid problems related to the termination of workers. This author focuses on the timely documentation of violations committed by a worker (Celap, 2011, p. 11). Additionally, managers should clearly explain what kind of mistakes a worker could have made. In this way, business administrators can enable these people to meet the requirements of a company. Additionally, it is necessary to identify the behavioral rules and expectations that employees should meet.
Reference List
Celap, M. (2011). Wrongful Dismissal Made Easy. Web.
High school secretary fired for moonlighting in porn movie. (2011). Edmonton Journal, p. 12.
The media occupy a vital place in the life of both the individual and large social groups. A crucial political issue covered by the media is the topic of unemployment. Unemployment is a socio-economic problem of society and the state, which combines such negative aspects as reducing labor productivity, growth of social tension, and competition, leading to destabilization. The problem of employment is one of the leading problems in the activity of state authorities. Discussing this important topic will help generate a valuable exchange of experience, identify new ways of solving it, and increase international influence in this area. This work aims to give an objective assessment of such a problem as unemployment, study the methods of its presentation by the media, and outline the aspects that require a comprehensive reflection on the part of scientists. Twenty articles were selected in a representative way for further reading, and various scholarly articles were studied to research and test the arguments.
Literature
Unemployment is a serious and widespread phenomenon that affects societys economic and social life and a countrys economy. The reflection of this topic in the media is discussed from different angles in many academic sources. According to Boomgaarden et al., newspaper coverage of unemployment unequivocally determines the perception of unemployment as a social problem (358). In this paper, the authors examine how media coverage affects the perception of unemployment. Distinguishing between different sources of information and other types of evaluations of problems, the authors find that the experience of unemployment contributed significantly to the perception of unemployment as a personal problem. Benesch et al. argue that the potential mechanisms of how media messages can affect concerns about immigration, the effect of media coverage persists even when other types of situations, such as those related to unemployment, are considered (55). The authors in the paper investigate immigration coverage, and to gain additional information, fears about unemployment are examined.
Expectations of unemployment can have a significant negative impact on aggregate consumption and wage growth. According to Garz, the news media is an apparent cause of unreasonable expectations about unemployment, as reports about the economy take place in a narrow negative way (157). In her paper, the author conducts a media content analysis to examine the potential relationship between negative coverage of economic news and pessimism in unemployment expectations. In most academic articles, unemployment is studied in the context of the financial crisis. The emphasis is placed on the fact that the media present this topic as one of the economys problems. For objective research, it is necessary to consider the media coverage of the situation with youth, COVID, and the media presentation of this topic as a problem and the precaution for the population.
Argument and Hypothesis
The importance of the issue of unemployment depends on the time, place, and situation of society. According to the above criteria, media coverage should reflect the actual position without being inappropriately negative or too positive. Such a way helps to look at the situation objectively and take appropriate measures to solve the problem. I assume that most media will cover the issue from a neutral point of view, and it also depends on the country the press belongs to.
The source sets the tone of the topic depending on the style of their platform, the end goal, and the expected reaction. In combination with the statements of Joe Biden, the issue of unemployment is quite common in American news. Thus, the media covers that the U.S. president has extended increased unemployment benefits until early September so that the unemployed can receive an additional $300 per week on top of their state benefits (Real unemployment, 2021). The type of coverage varies over time, in different parts of the country, on other platforms, and in different regions. According to the Italian media, unemployment is higher in Europe than in the United States; the Italian economy has collapsed by about 7% (Why are so many states, 2021). Depending on how the media present the topic, people develop a particular reaction to the issue.
Data and Variables
Content analysis on the topic of coverage of unemployment in the media allows you to analyze the mood and opinion of society, the tone of expression in the published media, and conclude the nature of the dynamics in addressing the problems associated with the topic. If properly applied, the method of content analysis will allow obtaining objective results. To this end, a representative sample was chosen, which is one of the critical concepts of data analysis. Representativeness determines the extent to which it is possible to generalize the results of a study involving a particular sample to the entire general population from which it was collected.
The information was searched for the keyword unemployment. Twenty news articles were then randomly selected; the procedure was carried out on the website. For the objectivity of the research, different countries were selected by the filter Language & region of interest. Seven articles from American sources, seven Italian authorities, and six articles from Russian sources were selected. The translator built into the browser was used to understand the information.
Results
Based on the analysis, it can be concluded that the news is covered differently depending on the country. American media emphasize the information about unemployment benefits (Is a $300 unemployment, 2021). The tone of the coverage is either neutral or negative. As for the Italian press, the news also discusses other countries, particularly the United States (US: unemployment rate, 2021). The tone of the coverage is primarily neutral. The U.S. benefits situation is covered negatively. Russian news positively covers the topic of unemployment: it mentions its decrease, but this happens only in the context of Russia (Unemployment is falling in Moscow, 2021). When other countries are mentioned, the nature of the article is either neutral or negative (Unemployment in the USA, 2021). The tone of coverage of the topic depending on the area is presented below. Thus, it can be concluded that the hypotheses put forward are consistent with the data obtained from the study.
Conclusion
Depending on how the media sets the tone of a topic, readers form certain attitudes and opinions. The study showed that the style of media coverage relies not only on the Internet resource itself but also on the country to which it belongs. It is necessary to study various sources to assess the tone of media coverage of a topic objectively. Three countries were considered in the study: Italy, the United States, and Russia. However, to obtain more accurate data and correct the nature of the presentation of the topic under investigation, it is necessary to study the news of all countries at different time intervals.
References
Benesch, Christine, et al. Media coverage and immigration worries: Econometric evidence. Journal of Economic Behavior & Organization, vol. 160. 2019, pp. 52-67.
Boomgaarden, Hajo G., et al. Covering the crisis: Media coverage of the economic crisis and citizens economic expectations. Acta Politica, vol. 46, no. 4, 2011, pp. 353-379.
Garz, Marcel. Unemployment expectations, excessive pessimism, and news coverage. Journal of Economic Psychology, vol. 34, 2013, pp. 156-168.
Unemployment is a costly phenomenon; it results in disadvantages and economic losses for the unemployed individuals, the society and the countrys economy in general. Unemployment can be defined as a situation where average individuals are unable to find jobs regardless of their desire to work. This paper discusses the impact of unemployment on the economy of a country and explores the rates of unemployment and GDP growth in Saudi Arabia.
First of all, when unemployment occurs, it directly affects the government as it has to pay unemployment benefits to the jobless population. At the same time, the revenues of the government become less because of the inability of the unemployed individuals to pay taxes. Domestic production rates go down as well. As a result, the countrys economy starts to suffer from loss of income and faces the need to borrow money from other countries.
Another important impact of unemployment on society is the decrease in individuals spending power. The citizens who are insecure about their future income or have no income at all start to reduce their expenses. As a result, the average spending power in the country drops drastically. In other words, when unemployment occurs, the individuals stop to contribute to the countrys economy and instead start to suck money out of the government (Hudson, 2013).
Currently, Saudi Arabia is one of the most frequently discussed countries when it comes to high rates of unemployment, and the situation has been this way for several years already. According to the most recent unemployment rates survey, about 6% of the countrys population is unemployed in total (Quarterly Unemployment Rate, 2014). The rates of unemployment among women exceed those of men dramatically, 21-21 % of jobless females versus about 3 % of jobless males.
This phenomenon occurs due to religious beliefs. According to fundamentalist interpretations of Islam, men and women who are unrelated by blood should not engage in daily interactions. As a result, womens involvement in regular labor becomes rather complicated. Moreover, the survey also compares the unemployment rates among Saudi and non-Saudi populations, and it turns out that while the unemployed Saudis compose about 11%, their non-Saudi peers have much lower rates around 0.5 % only (Quarterly Unemployment Rate, 2014).
It is worth mentioning that about two-thirds of the countrys population is represented by the youth the individuals who are younger than 30 years (Hoetjes, 2013). At the same time, the production in Saudi Arabia has increased affected by the growth of prices for oil, which generally peaked in 2011 and then have been maintaining their level with occasional ups and downs.
Gross Domestic Product (GDP) has been experiencing annual growth in Saudi Arabia. In 2010, before the increase of prices for oil Saudi Arabian GDP estimated 4.8 % annually, whereas in 2011 it jumped as high as 10 %, and in 2012, 2013 and 2014 the growth was slower, yet still significant, 5.4, 2.7, and 3.5 % accordingly (GDP growth (annual %), 2015).
Logically, production is directly connected to job creation, which is supposed to provide employment for the jobless population and reduce the rates of unemployment. Yet, in the case of Saudi Arabia, different dynamics are observed. The native population generally remains unemployed because most of the newly created jobs are given to foreign workers. For example, in 2013, the International Monetary Fund noted that in Saudi Arabia, out of two million newly created jobs, one and a half million were obtained by non-Saudi representatives (Hoetjes, 2013). As a result, about 30% of Saudi youth remain without employment.
This phenomenon occurs due to several reasons. First of all, the companies operating on the territory of the country prefer to hire foreign workers because, legally, they can be paid lower wages. Secondly, foreign employees are not as protected when it comes to employment. Besides, most Saudis prefer public sector jobs to those of the private sector due to the higher salaries paid by public employers and generally better workplace conditions.
Education in Saudi Arabia has been experiencing significant growth over the last several years, which means that these days the number of young graduates is large. As a result, more and more job seekers hit the Saudi Arabian labor market every year, but the government fails to provide them with decent employment opportunities. Some of the most common factors affected by high rates of unemployment are poverty, cost of living, life expectancy and health costs, income per person. Besides, high rates of unemployment affect the overall stability in the country, causing public dissatisfaction with their standard of living and even the growth of criminal activity.
In conclusion, Saudi Arabia was positively affected by the increase in oil prices and experienced the improvement of production and active growth of GDP over the last several years. At the same time, the rates of unemployment in the country remain high and affect the native population more than non-Saudis and females more than males, and youth represents the most vulnerable segment.
Unemployment rates keep growing by the day and render the country and unemployed individuals into tricky economic conditions. Unemployment benefits are one of the most important social programs provided by the government. It is temporal in nature and provides financial benefits to tax payers but have no jobs. The importance of unemployment benefits lie in its fulfillment of a genuine need for those who lose their sources of income to prevent them from getting into deep financial crises. With the surety of unemployment benefits, people evade getting into circumstantial crisis because of their jobless situations. This makes unemployment insurance a worthy program for the country, especially in periods when there is a steep economic downturn and many people lose their jobs often (Beranek & Kamerschen, 2011). It is a beneficial; program, which requires adequate consideration for its budgeting. The job market is very stringent of employment opportunities and several people risk losing their jobs each day. Because of such loss of stable incomes, the lifeline for support during such times is the unemployment benefits. It is the only hope for most people looking for means of earning, as they must survive within the weak economy with or without jobs.
Program Data
Unemployment insurance is for those who worked in the past and are seeking future employment. This situation leads unemployed workers to accept jobs that are unfit for their skills or inadequate for exploitation of their skills. Unemployment is responsible for increased conditions of underemployment and the fear for losing jobs is a possible cause for psychological anxiety. There can also be cases of depression, stress and loss of confidence. This is a crucial period of time since it makes the unemployed people to lose social skills and social contacts and at the same time, leaving the economy insufficiently utilized because of operation below its frontier of production possibilities (Ludwick & Mandel, 2011)
The data for the unemployment benefits program systematically works in coordination with state and local governments for the collection of information from government practitioners. The department of labor is in charge of provision of unemployment weekly claims report issued each Thursday. It presents seasonal adjustment for the unemployment benefits estimation for initial claims of the preceding week in the United States. The timeliness of these statistics is essential for the gauging of the labor market health and in extension, the performance in of the economy in general. The office of the unemployment benefits issues an assessment of the unemployment benefits in relation to budgetary status (Russo, 2012). The analysis of the data provides for the selection of unemployment benefits eligibility for the accessibility of the government program. Through stringent selection processes, chances for workers having high probability of staying without employment have high ranking for the need of unemployment benefits.
The results of adverse selection lead to profit maximization of agencies for private insurance setting for premiums because of the likelihood of no payment of to policyholders. High premium rates prevent people from purchasing insurance and through a compulsory program, the government manages to put the situation under control by avoidance of situations of adverse selection. This becomes the reason for the importance of the unemployment benefits such as unemployment insurance because of its potentiality for increasing efficiency. However, there is no elimination of moral hazards because of compulsory government provision of unemployment benefits program. Insurance companies are always keen to know the reasons for unemployment and become overly strict to those individuals who are unemployed out of their personal doing. This is usually difficult to discern, and leads so various incorrect decisions made regarding the eligibility for receiving of benefits. This means that the role of the government in the resolution of any of the claims can lead to efficiency (Beranek & Kamerschen, 2011).
Program structure
The program structure gives benefits to those who lose their jobs for a specific period. After that, they risk plunging into financial crisis should they not get jobs by the time their benefits expire. As things stand, the federal jobless benefits expire before most people get new jobs because of the sluggishness of the job market. This leaves many people with no means of paying their health insurance, home bills, utilities and automobiles as they continue looking for work. Most states have a provision of 26 weeks unemployment benefits period though the federal government program has an addition of 14 to 47 weeks on top of that depending in the unemployment rate of the state. This, thus, implies that the payment of unemployment benefits lies as a responsibility of both the state and the federal governments (Beranek & Kamerschen, 2011).
The stakeholders/customers/target audiences
The unemployment benefit targets those who lose their jobs and are with the intentions for getting employment in the future. It is for the sustenance of the unemployed so they do not suffer serious financial crisis during periods when they are out of work. The unemployed having benefits are majorly cash strapped and tend to spend the benefits fast enough to facilitate circulation within the market acting as a multiplier within the economy. Since most people have insignificant liquid capacity at times of layoffs, it is only necessary that they receive the unemployment benefits because of minimal chances for turning to other social programs, which may be expensive. However, since the state funded benefits are insufficient in sustenance of the unemployment benefits program given the high rates of unemployment, federal funding takes a key role in ensuring the sustainability of the program. The improvement of the economy leads the rate of unemployment to a minimum low, which helps in diminishing of unemployment insurance expenditures, and an increase in job prospects ensues leading to an increase in the pace of job creation. Therefore, the input of the federal government in the extension of the unemployment benefits program is essential in helping individuals to find new jobs before they exhaust their unemployment benefits (Russo, 2012).
There are imperfect claims that unemployment benefits increases reluctance for job searching. These claims state that most unemployed under the benefits scheme find life relatively equal as employees with meager employment and unemployed people with benefits. Such insinuations lead to stringency in allocation and approval of benefits, which can lead to locking out of people who deserve. What I would change about this program is its temporal stance. It is difficult getting jobs that the time duration given for receiving the unemployment benefits does not sustain people adequately. Many are the occasions when the period for receiving the benefits expires before people get any employment and that leaves them with the plight of financial sustenance. As much as there are concerns regarding the fact that an extension can probably cause laziness and unwillingness to seeking future employment by beneficiaries, it is worth putting an evaluation structure that ensures that those who deserve the benefits do not suffer at any given point when the benefits can be of essence to their survival (Russo, 2012).
The status of the unemployment benefits program
The status of the unemployment benefits program has the eligibility of individual influenced by state u8nemployment rates, employees earnings and the colander dates. The program offers 26 weeks benefits, but that can go beyond that through the extension program though it does not permit extension beyond 99 weeks of earning the unemployment benefits. However, for those who already exhausted their unemployment benefits there are no possibilities for getting any benefits. There are three types of unemployment benefits, which an unemployed individual can receive from the government (Beranek & Kamerschen, 2011). The first one is the unemployment compensation, which works on a standard recommendation for provision of unemployment benefits individuals under the federal-state unemployment compensation program to a maximum of 26 weeks. Second is the extended benefit, which targets individuals in specific states depending on their eligibility for entering the program. This can give about additional 20 weeks and the states are responsible for half of the payment of these benefits with the federal government taking charge of the remaining half. Lastly is the emergency unemployment compensation, which is a temporary program of the federal government. It goes to individuals who exhaust state benefits of regular unemployment benefits. It is applicable to all states regardless of the benefits rates.
Recommendation of the program
This program is worth pursuing because of the positive influences it promotes to the lives of beneficiaries and the effect on the economic status of the country. It is a wonderful means of using the taxpayers money because it maintains a successful stance in ensuring that there is stability of households that lost their stable incomes. The feasibility of this program lies in its capability of helping in the recovery of the economic status of the country especially in periods of recession. Since it is one of the greatest tools for maintaining a boost in economic growth, it is a worthy venture because it is reportedly responsible for increasing of the Gross Domestic Product (GDP) by about $ 1.60.
This leaves it as a highly ranked influencer in the increase of employment and growth (Beranek & Kamerschen, 2011). An alternative unemployment benefits policy is essential for the reduction of the effects of moral hazard and costs. This can introduce individuals to the importance of opening up savings accounts. Employers can spear head such an initiative so that employees can have a savings account for their withdrawals upon layoff. Such a plan can be convenient for payment of relevant amounts of money as benefits to employees who retire without layoffs but very beneficial to those who lose their jobs prematurely. Therefore, other than just being an opportunity for maintaining stability in American homes it is a key fiscal stimulus source for easing labor market pressures. The cost of sustenance of this social benefit is incremental because it cuts across individual benefits and extends to state and federal beneficial sustenance of the economy (Russo, 2012).
References
Beranek, W., & Kamerschen, D. R. (2011). Unemployment Benefits and Unemployment. Modern Economy, 2(5), 800-803.
Ludwick, M. S., & Mandel, B. A. (2011). Analyzing Federal Programs Using BEA Statistics: A Look at Unemployment Insurance Benefits Payments. Survey Of Current Business, 91(9), 14-17.
Russo, D. (2012). Unemployment Compensation & Extended BenefitsWhat Employers Need to Know. Journal Of State Taxation, 30(6), 33-48.
The United States has the largest national economy and it is the largest trading nation in the world. However, a segment of the US population is facing devastation of unemployment making it a significant challenge to the national economy. Unemployment has elicited important economic, public policy and political debates in the past. Currently, it is a significant topic for discussion in the political arena. The economic health of the US is often measured by the number of jobs created (Associated Press, 2012).
The recent financial crisis of 2008 increased the rate of unemployment, and impacted the economy negatively. United States government experienced a great pressure in the fields of taxation and public finances. Although the economy has shown good signs of recovery, unemployed Americans are still seeking for jobs. Unemployment is associated with loss of income and the consequent loss of health insurance. Unemployed people are usually unable to cover their health expenses. The government is forced to provide special health coverage assistance to these people; this impacts the economy negatively. Most unemployed people are uninsured; this puts the economic stability of the US at risk.
Unemployment rate is a measure of the growth rate of the economy. It is also used to measure the negative economic occurrences like recession. Unemployment rate in the US had increased during the credit crunch of 2008, and continued to increase after the economy showed the signs of recovery. After the credit crunch, employers were reluctant to hire more employees.
Reduced economic activities cause recession which results in unemployment. Loss of jobs results in a significant decline in earnings, and a decline in consuming capacity of unemployed people and their families. Unemployment is the major cause of mortgage defaults that crippled the economy of the United States. In addition, it reduces the ability to spend by affected families. This implies further decline in demand for goods and services. Businesses suffer significant losses and are forced to lay off some of their workers, which, in its turn, contributes to increased unemployment rates.
Small businesses in the United States are the largest employers accounting for over 50% of employed individuals, while large businesses employ about 38%. Small businesses are the leading creators of new job opportunities in the US. Statistics shows that only 50% of small businesses survived for half a decade in the United States. This shows that the leading employer in the United States is not only unstable, but also unreliable. Small businesses create more employment opportunities, but at the same time, they are the most affected by the financial crisis. This means that the great part of the American population lose their jobs. Continued reliance on small businesses shows that unemployment is a huge economic challenge (SBA, 2012).
The economic crisis of 2008 increased the rate of unemployment from 5% to 10% in the last quarter of 2009 fiscal year. In September 2012, unemployment rate stood at 7.8%. The present rate has been used by the current president in his bid for reelection. Reports indicate that a lot of people base their judgment on unemployment trends rather than the rates themselves. The report further suggests that in some states, unemployment has dropped because some people have given up their job seeking efforts; some have dropped out of their jobs. These people have lowered the rate of unemployment since unemployed status is only valid for people who are actively looking for jobs. The national unemployment rate decreased since wrong conclusions had been made. People with part time jobs who are still looking for better opportunities are mistakenly counted as employed (Associated Press, 2012).
Approximately four million young people were unemployed by July 2012, a slight improvement from 4.1 million youth last year. Youth unemployment has a great economic significance since these people form the most productive segment of manpower. Unemployment among American youth varies based on race and socio-economic background differences. Surveys conducted in July 2012 indicated that about 15% of white American youth, 29% of African American, and 19% of Hispanics youth were unemployed (BLS, 2012). Unemployment among the Hispanics and the African American youth is believed to be caused by drug abuse and increased crime among American youth (Haynes, 2009).
A survey conducted in August 2012 revealed: for every available job opportunity, there are six interested unemployed people. This shows that the country has not fully recovered from the financial crisis. In addition, statistics indicates that recovery from the financial crisis might be prolonged with poor economic development and longer periods of unemployment (Associated Press, 2012).
During the financial crisis of 2008, African American youths were worst hit by unemployment. Unemployment rate among young people between 16 and 24 years old reached 34.5%; this was similar to the Great Depression. Unemployment among young Americans has troubling effects on the economy. Unemployment among the young people has long lasting negative effects. It is hard for the victims of unemployment to recover financially in their future. This means that in future unemployed youths and their families are likely to live in devastating conditions. According to economists, young people hired with minimum wage are not likely to recover for at least ten years (Haynes, 2009).
Unemployment in the United States has detrimental effects on the economic potential and financial position of the country. Unemployment implies reduced production among capable individuals. It also means reduced performance in the business arena and reduced taxation; a form of government revenue. The government is also forced to aid the affected population through healthcare and other social amenities. Ultimately, the government debts increase reducing the national economic potential (El-Erian, 2011).
Although the nation has recovered from the credit crunch, unemployment rates are still considerably high. The rate would be higher that the present 7.8% if all part time workers seek for a full time employment. This indicates that unemployment rate is unexpectedly high; this is an economic predicament. Economic effects of unemployment in the US are multifaceted. Unemployment affects the economy, and affects personal lives of Americans. It is also responsible for increasing budgetary pressures, and intensifying social and political pressures (El-Erian, 2011).
A profound research indicates that when unemployment rates begin to rise, it is difficult for unemployed people to get employment. In essence, it is hard to restrain unemployment. The long-term effect is an unstable economy due to decreased productivity. Unemployment in the United States is deteriorated by lack of adequate investment in human resources, declining labor mobility and lack of job retraining plans. Unemployment problem in the United States will continue to rise, and the gap between the rich and the poor will continue to widen. Productivity and labor skills will continue to be undermined, and the economy will continue to be poor (El-Erian, 2011).
References
AssociatedPress. (2012). Unemployment rates fall in 7 US swing states and were unchanged in 2 others. The Washington Post , pp. 1-2.
Describe and define the three phases of the Business Cycle
The business cycle may either go through a recession, recovery and a boom in the business cycle. During the recession phase, the real GDP of the economy will have declined to the bottom but this must have taken place for six months before it can officially be declared to be a recession (Shafrin, 67). In the graphical representation of the business cycle (which is a plot of real GDP against time (In quarters or months), this period is often seen as a trough.
The other phase is the recovery phase which occurs after the recession and is seen by a steady rise on GDP. Finally, any business cycle will also have a boom which a period characterized by high capital. It will contain high instances of inflation which will necessitate the need to lower interest rates. Booms arise when excess capital is contained in the market and these drive up asset prices (Slavin, 217).
The economy and phase of the business cycle
Currently, the US economy is in the recovery rate. The worst of the recession may be offered because some of the leading indicators appear to be increasing. The most important economic indicator is the GDP. In 2010, it was at 14.72 trillion dollars which was an increase of 0.39 trillion dollars from the previous year. A rise in purchasing power parity is always synonymous to a recovery. Furthermore, inflation rates have increased from -0.3% to 1.4% between 2009 to 2010. A rising inflation rate is indicative of greater prevalence of capital assets in the economy. Also unemployment went down by 0.4% between the years 2010 and 2011.
Leading economic indicators
There are over 20 economic indicators but the most significant ones are about five. The first being the GDP which is a measure of a countrys wealth through the series of services and goods produced. Consumer price index refers to changes in prices that consumers paid for. Producer Price Index on the other hand indicates the amount that producers receive for their goods and indicates the cost of living. This is seen as an important measure of inflation. Money supply is an important measure as it denotes the total amount of money in the economy. Consumer confidence survey looks as public optimism about the economy.
Current employment rate indicate the status of the labor force through employment and unemployment numbers. The Retail sales index is a measure of personal consumption. The S and P 50 stock index illustrates performance of 500 public stocks and is an important predictor of future consumer confidence levels. Housing starts is a measure of new constructions and is important because mortgage rates are highly related to interest rates. Trade inventories and manufacturing sales are also crucial as they measure trade values of shipments in manufacturing, wholesale and retail (Shaffrin, 46).
Who compiles the most widely-used forecasting device on a monthly basis?
The most widely used forecasting device is the consumer confidence survey which is released on a monthly basis by the Conference board. As mentioned earlier, this is an assessment of the degree of public confidence in the status of the US economy. It predicts the level of consumer spending because if consumers are not confident in the economy then they are unlikely to spend.
In three or four sentences, answer the following question: What is the Conference Board?
The conference board is a nongovernmental organization that was formed in 1916 in order to deal with declining confidence in the economy. The Conference board is mandated to carry out research on business trends and the economy. the six categories that it carries out research include corporate citizenship, corporate governance, economics (including consumer confidence index, business cycle indicators and Help wanted advertising index), human resources, marketing communications and strategy planning.
What are the three types of unemployment that figure into total unemployment
The three types of unemployment include frictional unemployment, structural unemployment and cyclical unemployment. Frictional unemployment refers to that kind of arrangement in which a person is not looking for a job but is not working as well because he or she is waiting to start; a situation that arises out of relocation or new admissions. Structural unemployment refers to a situation in which a worker is not working because he or she has been displaced by a newer technology or by a new invention in the market. Lastly, cyclical unemployment refers to those people who lose jobs as a result of economic conditions such as the recent recessions.
What is meant by Natural Unemployment?
Natural unemployment comes from full employment. When unemployment levels correspond to structural and frictional employment brought on by worker transitions and entry of new members into the labor market then chances this becomes natural unemployment (Shaffrin, 45).
What is meant by full employment for our US economy?
Full employment denotes a situation in which the economy it at full capacity. In other words, no cases of cyclical unemployment should exist such that people are only unemployed because of frictional unemployment or structural unemployment. A percentage of 94% of the labor force need to b employed in order to claim that full employment exists.
If the unemployment rate is 7 percent, how much is the cyclical unemployment?
Cyclical unemployment may best be understood as the difference between unemployment and natural unemployment. Frictional and structural employment account for 6% unemployment. Unemployment rate=structural+frictional+cyclical unemployment
7%=6%+cyclical unemployment
Cyclical employment=1%
Problem No. b: Compute the unemployment rate given the following information: 8 million unemployed, 117 million employed.
Unemployment rate=number of employed people / labor force*100.
Problem No. c: Given the following information, how many people are in the labor force? Information: 3 million people are collecting unemployment insurance; 7 million people are officially unemployed; 2 million people are discouraged workers; and 110 million people are employed. Show the computation fully.
Discouraged workers are those people who do not fall in the labor force (Slavin, 223)i.e. they are neither employed (in a paid job or family business or absent from work due to illness) or unemployed (actively looking for work or laid off and maybe recalled) so they cannot be included in these calculations. Additionally, people collecting unemployment insurance are also not a reliable measure for unemployment because some may still be collecting checks when they are still engaging in some other form of part time business. Usually official figures are the ones that count. Labor force=Employed +unemployed=7,000,000+110,000,000=117,000,000 are in the labor force.
Unemployed means different things to different people
As a result of the recession, person Y who worked for General motors has been laid off. General motors laid off workers because of the changes in economic conditions that caused it cut down on costs. Person Y is therefore cyclically unemployed because he will get back to work as soon as the economy recovers. Person W is a fresh graduate who has just gone through an interview and is waiting for processing of his health report before he can commence work.
This is a case of frictional unemployment because Person W is not looking for work actively but is simply waiting to clear all formalities before he can start. Person T is a housewife who used to work for a calling centre. Her department was outsourced to India and she is now jobless. In fact, most of her peers in this industry are going through the same predicament and it is unlikely that she will get any such job in the US again. This is case of structural unemployment.
In the articles listed in your Research Site List found in Course Documents, what one specific job added approximately 400,000 jobs in the Spring of 2010?
These were jobs in census hiring. Since the census is only a periodical thing and it is not something that will last. They should not have been included in raising employment numbers because they were only to do this in the short term. They are not like the usual part time workers who find employment in restaurants and other permanent businesses. The census is administered once in a couple of years so they will remain unemployed for a very long time.
What is the current unemployment rate as stated by the Federal Government
In the month of May 2011, it was asserted that the US unemployment rate is 9.1% (BLS, 13). Some economists affirm that the true unemployment rate is much higher because the number often excludes the discouraged workers who quite looking for work. in reality, discouraged workers are still not contributing actively in the economy so they are still unemployed. When long term discouraged workers are not counted then this makes the estimates quite inaccurate
Works Cited
US Bureau of labor and statistics. US unemployment rate. May 2011. BLS report. 2011.
Sheffrin, Steven. Economics: principles in action. NJ: Pearson, 2003.
Unemployment is a macroeconomic aspect that has a direct impact on the general public (U.S. Bureau of Labor Statistics para. 2-7). In the US, there have been different trends in the economic sector different rates of unemployment. Generally, the understanding of unemployment in the macroeconomic context is vital both for consumers and economists. This paper, therefore, explores the aspect of unemployment in the United States in the context of macroeconomics.
Statistics
In March 2014, job openings increased by about 4.0 million showing no much change from the statistics in February of the same year. In March, there were no changes in terms of rates of hiring, which stood at about 3.5 percent. Similarly, the rate of separation stood at about 3.3 percent showing no significant changes (Kurtz para. 3-6). Likewise, the rate of those who quit their jobs for one reason or the other (about 2 percent) remained constant in March, but the rate of the discharge from duties reduced by about 1.0 percent.
In the first four months of 2014, the rate of unemployment in the United States dropped to about 6.2 percent from 6.8 percent (U.S. Bureau of Labor Statistics para. 4-7). This was the lowest rate of unemployment recorded in the US since the last quarter of 2008. Those rendered jobless as well new workers gained entry into the labor force (Izzo para. 1-3). The number of people who previously were unemployed stood at about 10 million, but at the turn of 2014, the number decreased by about 730,000 to reach about 9.3 million people.
Overall, from the last year 2013, the rate of unemployment in the United States reduced by about 1.3 percent, and the number of the unemployed dropped by about 1.8 million (Carmichael para. 3-6). Amongst the major groups of workers, the rate of unemployment dropped in March and April this year. Specifically, for grown-up women, it dropped to about 5.6 percent, for adult men, it fell to about 5.7 percent and for teenagers, it reduced to about 19.0 percent (U.S. Bureau of Labor Statistics para. 2-4).
In terms of race, for whites and Latinos, it dropped to about 5.2 percent and 7.0 percent relatively and for African Americans, it feels to about 11.5 percent. For the Asians, the rate of unemployment remained at about 5.8 percent. Moreover, the number of people who lost their jobs for one reason or the other also dropped by about 250,000. Previously, this number stood at about 5.3 million (U.S. Bureau of Labor Statistics para. 3-4).
In addition, the number of those people who are employed on a long-term basis also dropped by about 280,000 in the early months of 2014. Previously, the number of people who were employed in the long term was about 3.4 million. Overall, these people accounted for about 30 percent of the entire unemployed population (Izzo para. 3-5). For the last year, the number of people who were unemployed on a long-term basis also dropped by about 900,000. In the month of April 2014, the civilian labor force reduced by about 800, 000 (U.S. Bureau of Labor Statistics para. 4-5).
In addition, in the month of April, the rate at which the labor force participated, which previously stood at about 62 percent, dropped to about 61.6 percent (Izzo para. 3-4). The bottom line is that the rate of participation amongst workers has not recorded any significant change since the last year 2013. In terms of productivity, in the first quarter of 2014, unit labor costs increased by about 4.0 percent leading to a drop in productivity level by about 2.0 percent. All this was in the other sectors but not in the agricultural sector. Specifically, in the manufacturing sector, productivity grew by about 3.0 percent with an increase of about 0.2 percent in labor costs (Izzo para. 3-4).
Reasons
In general, the health care sector added about 32,000 jobs, the retail sector added about 23, 700 jobs, the construction industry added more than 48,000 jobs, and the mining sector added about 5,000 jobs (Izzo para. 2-5). In addition, the transportation sector added about 1,300 jobs, leisure & hospitality added about 24,000 jobs and manufacturing added about 14,000 jobs, film industry added 21,000 jobs and the wholesale sector added about 30,000 jobs. This is also attributed to the establishment of a good environment for investment by the US government (Kurtz para. 3-6). In specific sectors, such as construction, the federal government announced an increase in funding for major projects, such as schools, roads, and even repair of airports, that is why the number of jobs increased (Carmichael para. 7-10).
In the manufacturing sector, the bailout by the government helped put major employers on track hence many jobs were created (Kurtz para. 5-6). Overall, out of the millions of jobs lost as a result of the 2008 financial crisis, the United States had only managed to put about two-thirds of people who lost their jobs back to work. In addition, the number of those who are out of work has remained high majorly because the population of the United States has also been increasing.
Works Cited
Carmichael, Kevin. U.S. Unemployment Rate Drops To 6.3 Percent, Lowest in more than Five Years. 2014. Web.
The high level of employment in any nation promotes the sound of the economy. When youths and women are in full employment, the country social, political, and economic aspects are in a better position. Through a high level of employment, the government gets wide ways of obtaining taxes, as the product output is increased.
Through an increment of government revenue and increased output in productivity, there is growth in the economy and poverty reduction (Boyes and Melvin 312). In a country where the level of economy growth is high, there are more and more opportunities.
High levels of employment make the economy stable and help in recovering damaged parts. Even if the terms of employment are short or long they tend to boost the economy a great deal. Other benefits related to the employments are high levels of entrepreneurship due to the increased participation of young and energetic people in the labor market. Economists say that well paying jobs improves the overall incomes and social money spending of poor people, and assists a great deal in financing social activities.
Unemployment is an economic condition that occurs when an individual or a group of people seek jobs to no success. In every country, the level of unemployment depends on some factors such as the status of the economy, market and commerce forces.
There are five main types of unemployment (Baumol and Blinder 630). To begin with, there is frictional unemployment that is a temporary status of the job seekers. This condition occurs when a person takes a break from his or her current job and start looking for another opportunity somewhere.
This period when one shifts from one point of work to the other is the one that creates frictional unemployment. In most of the developed countries that have advancement in various ways, there is a high probability of one securing another job after leaving one. The major challenge is in the developing and in the underdeveloped countries where if one quits from one job, getting another one is a problem.
The issue of frictional unemployment can have a solution through employment insurance programs. This program offers support and temporary sources of income to the people who in several occasions become unemployed. In most cases, people do not quit from their jobs voluntarily but because of some circumstances like nursing a sickness, giving birth, or other critical issues in the family.
Through this insurance program, the unemployed people are still made to earn some income to continue supporting their families, and meeting their needs (Tucker 380). During this period, the unemployed people face their challenges with more confidence. The government should concentrate on empowering these insurance programs such that they are in a position to meet even large group of the frictional unemployment cases.
The employees who mostly benefit from this program are those who quit their jobs due to good reason like shortage of work, or sudden break of the job management. The government should also come up with a policy of encouraging the idea of permanent jobs to avoid such breaks. If one is in a permanent job, and well paid, it would be hard for one to quit from such a job. Taxation should be favorable to some salaries, as the net salary is so small unable to sustain ones life.
With reasonable tax on salaries, employees will have a good amount of salary to manage their lives without any need of quitting. The major limitation of the insurance programs policy is that the employees have to make regular contributions of some amount to the program. However, there is no guarantee of receiving this compensation after quitting a job. Compensation depends on the reason of quitting.
The second type of unemployment is structural unemployment that happens due to major changes in the economy. The major reason behind this type of unemployment is when the job in question requires more skilled workers than the current ones.
In addition, this form of unemployment may occur because of the difficulties of moving to a new working location, or challenges of learning new skills to meet the needs of the available jobs. Sometimes, the economy may advance greatly making use of new machines and technologies replacing some employees.
Structural unemployment in most cases occurs due to creation of new job opportunities to meet the labor demands in the market. This type of unemployment is very common as far as the economy of the country is flexible whereby when there are some firms going down, there are others that are in need of other skills and expands at the same time (Gwartney, Stroup and Sobel 516).
The rate at which the technological advancement of the nation is developing and globalization, the need for a more advanced labor is required. The nation cannot avoid be prohibited from advancing in technology or in its economy but there can be a solution for this type of unemployment.
The fact is that every nation is subject to some ways of advancement, and because of this advancement, a continuous mismatch of labor and the skills required is inevitable. As far as the government acts fairly to all sectors in the economy, there is need for special attention to service based sectors, such that it will be possible for them to accommodate as many employees as possible. Policies to increase job opportunities in service sectors can help many people to secure jobs in these sectors.
The rest of people, who may not fit in service industries, will then find some places in the industrial sectors. Some policies of regular training of employees in industrial sectors are also very important (Tucker 89). These sectors should emphasis on conducting regular trainings to keep their employees updated and matching with the current changes.
Before an industry purchase a modern machine that may require new skills, there is need to equip the current employees with the necessary skills as long as they are ready to learn. Most of these employees will be ready to learn to secure their jobs. It can be much disappointing if an industry can lay off more than 85% of its employees because they lack the necessary skills.
The only group that may deserve dismissal is of those who may find it hard to learn those new skills due to their education levels. If such policies may put into action, a country can only be experiencing very few cases of structural unemployment. If government supports service sectors fully and other business departments there will be more job opportunities for the citizens to choose where they fit best (Campbell and Craig 203).
Advancement of the countrys economy and its technological levels should be an opportunity for job creation but not a way of dismissing workers. Advancement is worth celebration but not an issue causing such disappointments of joblessness. Government may be much willing to support service industries, but there is need to distribute resources uniformly hence putting a limitation to that policy. If it supports one industry more than the rest, it may seem like discrimination.
Another type of unemployment is classical also called real wage and occurs as result of trade unions and other labor organizations actions. Severally, trade unions fight for the rights of the employees especially if the salary they are getting is not worth their responsibilities at their working places. When they realize that a certain company is underpaying the employees or the working conditions are not favorable for them, it is their duties and responsibility to fight for the rights of those employees.
To some extent, they calls for a bigger salary increment that the company may not afford to pay, and in return, the company decides to reduce labor and pay the few that it can afford. Although there is right for the trade unions to fight for the rights of the employees, the type and the status of the company should also be a factor to consider before taking actions. It is better to receive little salary than to survive without any money to support personal and family needs.
The government may try as much as possible to curb this type of unemployment through some policies like a minimum amount of wages than any company should not go below, and the minimum salary for the employees. Those terms can only be ignored incase there is a special arrangement between the employer and the employee. Sometimes it can be challenging to the government to take hard measures on some companies, as they also have their own rights in operations (Baumol and Blinder 420).
The trade unions should be taking some time to talk with the employees first before they take any action of salary negotiations. The employee should be ready to take the risks of the negotiation outcome if it will be necessary for that salary complaint. As much as the government tries to put some limitations on the wages that the company should pay its employees, some companies object and decide to negotiate with its employees.
The other type of unemployment is seasonal that mostly occurs in industries that deals with seasonal customers or products. For instance, tourism industries work only during the periods when there are expecting tourists. When these jobs are out of season the employees stays unemployed (Tucker 113). The employer may engage these employees in other minor jobs, even if with relatively lower salaries during the off-season as they wait for the peak of the season.
On the other hand, the government may provide these employees with some reserve works in the public sectors to keep them going during the hard seasons. This can only be possible if the countrys economy is doing well and the government has enough money to take care of these situations. Although it may be hard to take care of every individual, but the majority should benefit and earn something during such seasons.
Those people, who suffer from seasonal unemployment, are at an advantage on the other hand. When their job is on season, they earn much money that may take them through the off peak seasons or invest in other fields to keep on earning.
During this period when they are not officially working, they can also look for other seasonal jobs before they resume to their normal fields. Even if the government can try to accommodate those people during the off-season periods into public sectors, it cannot afford to absorb all of them, hence putting a limitation to this policy.
Disguised unemployment is another type most common in the underdeveloped countries. The major problem in these countries that results to this type of unemployment is the slow growth of capital stock.
The rate of population growth is much higher than the capital stock growth, hence becoming very hard for the country to offer a reliable type of employment (Gwartney, Stroup and Sobel 121). A country with such a problem is realized through a high number of unemployed people in the urban areas especially cities. In such countries most of the young energetic people end up in agricultural activities where the name disguised unemployment comes from.
The people who finally end up in agriculture do not add any value as they do this work unwillingly, as they have little knowledge on how agricultural activities operate. The government can only solve this problem through establishing more sectors by adding spending to create job opportunities, although the overall Gross Domestic Product of the nation limits this policy sometimes.
The last type of unemployment is cyclical that occurs during recession. At times, the economy of a nation may be so down whereby the demand of the goods and services is also down hence pulling down the need for labor in industries and other sectors.
During such a period, most companys have no other option other than firing any surplus labor. It is a hard moment of every company as they wonder on what criteria they will suck the excess employees. Most of them make use of the education levels and the acquired skills of the employees as the best factor of elimination.
When the countrys economy is in recession, the government can only be the savior. The government may decide to lower both the tax and interests rates, which will in return boost the consumer spending as well as the demands of various goods and services. This act by the government will create more job opportunities that creation of cyclical unemployment. Prolonged reduction of the government revenue may limit this policy, as the government also requires money for its operations.
In conclusion, the government does not set any target in its operations for the unemployment cases. Its main objective for its citizens is to have enough jobs in the market offering opportunities to everyone who is in need of work. The government aims at equalizing the demand and the supply policies between its citizens and the industrial needs to make both benefits from one another (Gwartney, Stroup and Sobel 701).
To some extent there are inevitable limits that the government cannot exceed as far as controlling unemployment cases is concerned. In several cases, the policies that are looked upon to improve the levels of employment in a nation may be very expensive and on the other hand, they have an opportunity cost for them to be successful.
Works Cited
Baumol, William and Alan Blinder. Economics: principles and policy. New York: Cengage Learning, 2008.
Boyes, William and Michael Melvin. Economics. New York: Cengage Learning, 2006.
Campbell, David and Tom Craig. Organisations and the business environment. London: Butterworth-Heinemann, 2005.
Gwartney, James, et al. Economics: private and public choice. New York : Cengage Learning, 2008.
Tucker, Irvin. Macroeconomics for Today. New York : Cengage Learning, 2008.
The global recession has led to rising numbers of unemployment in the United States and the world at large. The protest at Granite City, Illinois, depicts frustrations and disappointment of the workers who are not sure of their jobs. Indeed, a myriad others have lost their jobs and are seeking means to address the dire situation. Many corporations have embraced the globalized trade in the aim outsourcing labor in economies where it is cheap. The results have been rise in unemployment and underemployment amongst the Americans. Steve Jobs appreciates the role of global chain supplies and points out that the American jobs are not coming back any time soon. The global chains are to blame for the unemployment rates although little could be done since it would be irrational for Wall Street not to save on the labor costs. The importation of steel from other countries where it is cheap has also collapsed the local steel industry. This in turn has increased the woes of thee American steel workers. Could the authorities do anything to avert the situation considering the number of the American population that is underemployed or unemployed?
Ricardo theory explicates that every nation stands to benefit from international trade. He was convinced that despite the countries experiencing different economic growths, the developed and the developing would reap benefits by engaging in international trade. In his theory of labor, it is critical for different countries to appreciate the law of comparative advantage. For instance, when companies produce similar products at the national level, the company that minimizes the cost of labor has an absolute advantage over its competitors. Nonetheless, Ricardo would argue that the law of absolute advantage rarely dominates the international trade. Rather, the law of comparative advantage comes into play and exposes countries to benefits. He explains that organizing and planning the international trade would remove the law of absolute advantage that currently accrues the Asian countries such as India and China.
He would suppose therefore that the internal economy would be planned rather than allowing the capitalistic greed to prevail. As such, the American steel industry in comparison with the Asian steel industry gives a picture of the latter enjoying the absolute advantage of the former. This has led to the collapse of the steel industry, which should not be the scenario according to Ricardo. He would make assumptions of efficiency in production of steel where workers should all be employed, as idleness would not be condoned in such an ideal global economy. Besides, the factors affecting the productivity are constant and not easily changed.
Hence, planned economy would dictate that the workers assume roles that they are skilled and can perform at their best. This would lead to the need to employ both American and Indian steel workers since they specialize in various tasks. By assigning the American and Indian workers to the roles they are relatively good at, the consumption of steel would increase in the countries with relatively high competitive advantage. Besides, the concept of division of labor between countries stands to benefit all countries due to the principle of comparative advantage. However, the increased unemployment and the collapse of the steel industry in the United States results from the domination of companies at the microeconomic level seeking an absolute advantage at international stage. Ricardo distances himself from the law of absolute advantage at global economy. He would probably accuse the Wall Street of undermining the international trade principles at the expense of the American workers.
However, Ricardo would criticize the changes that are evident at the international trade. While he articulates that the real wages are similar across the entire biological subsistence, he fails to see the role of capitalistic ravenousness that has typified the global economy in the name of Multinational Corporations. He would be dismayed that contrary to his notion that the profits tend to equalize at the local market, the rise of the powerful companies and corporations has led to profitability of firms outside the national economy. This has led to differences in the real wages across the global economy as the corporations seek to take advantage of labor markets dominated by low wages that even fall below the real wages. In the same tune, the policies and laws that govern workers in the American society have overtime increased the wages overtime. Similarly, it has led to the shifts in international labor markets at the expense of the American worker.
The rise of capitalistic motives typical of the current multinational companies such as Apple, Dell and Applied materials to mention but three have led to the negative effects of the international trade. The companies have dominated the policymaking processes of the government at the expense of thee workers. Despite the growing concerns of the steel industry and the consequent rise in unemployment rates, the multinational corporations are reaping immensely from the liberalized trade. The government ought to scrutinize its policies and understand the areas that it has high comparative advantage to limit the outsourcing that the companies are making. Besides, it would ensure a comparative advantage by issuing subsidies to the local industries to protect them from the vicious effects of Multinational Corporation that are motivated by profit motives and capitalistic urges.
It is evident that the American economy enjoys huge advantages in the name of relatively high innovation, skills, sound intellectual property policies and above all, technology. It is therefore possible for the country to protect the local industries by stimulating production in the above areas that it commands substantial comparative advantage. This would be in line with Ricardos theory of international trade that is anchored in the belief that all nations stand to benefit by liberalizing their economies. Besides, this would protect the American worker from the whims of capitalistic objectives without necessarily interfering with free trade.
Essentially, the American economy is suffering from the international trade. Companies have sought to import materials and outsource labor from the countries that commands absolute advantage over the United States. Such industries like the steel industry are on the verge of collapse owing to the increase in the profit-motivated multinational companies. Ricardos arguments that the international trade would benefit every country that participates in the trade have failed to foresee the increase in companies that command huge influence on the course of the global economy. Besides, they have destabilized the real wages across the entire international markets. However, not all is lost as the government still has a chance to ensure that the companies do not outsource labor in areas that it commands comparative advantage. Besides, it can increase its comparative industry through subsidies and other avenues.
Human beings have various needs that are essential for their survival on earth. These needs are categorized as basic (food, clothing, shelter, education and proper health care) hence one can not survive without them. Even though others are more urgent and important than others, it requires proper planning to ensure that they are all considered and catered for. In order to have these essential needs, a person has to have money to access or buy them. Money is earned through payments from employment. This essay aims at pin pointing the main reasons why there is an increasing rate of unemployment in many countries in the world.
Main Body
Employment refers to any activity that is aimed at generating income to an individual in terms of profit or salary. Profits are realized when a person invests capital on any business activity while salary is obtained after offering services to an individual, company or organization (Powers 104). Unemployment is a situation that involves lack of participation in an activity that generates income for the individual. This has been fuelled by the following major reasons that are man made while others are natural;
Human population growth rate has sky rocketed in the last few years to supersede the worlds ability to create employment opportunities to the available population (Cottle 36). The worlds population is said to be increasing at a compounded rate of about eighty million people every year. This statistic means that after about eighteen years time there should be an addition of at least fifty million employment opportunities for these people when they are grown ups. In addition, this population is projected to be about ten billion by the year 2050. These statistics mean that there should be about four billion newly created employment opportunities by 2050. However, this is usually not the case as the rate of employment opportunities being created are very few compared to the demands of the population and this means that many people will be unemployed regardless of their qualifications.
Technology and innovations have also contributed to the high rates of unemployment when people are being forced to leave their work positions as machines take over. In the last four decades a single office would have an office secretary, personal assistant, office messenger and an office clerk (Stringham 121). However, with the increase in the use of computers in the office one person is able to do all these chores courtesy of the internet. People with the ability to use computers to perform various tasks are usually considered better candidates in interviews compared to people with limited ability. In some occasions, human beings have been completely replaced by machines like in the dairy sector where milking of dairy cow is now being widely done by milking machines. The use of robots in many industrial and warehousing processes has contributed greatly to the displacement of human labor in the production processes. Furthermore, the use of robot controllers and integrators that combine human and machine efforts is a recent development that will have great impact on employment opportunities in the world.
The most inevitable factor that has contributed to high unemployment rate in all parts of the world is the depletion of natural resources that offer employment opportunities to the community. Many countries that have natural resources like mineral ores and carbon fuels usually offer immense employment opportunities to the local and beneficiary population. However most of these resources are not renewable others like timber take too long to be replaced and regain their useful state. Sometimes human activities lead to the depletion of these natural resources (Brophy 92). Whenever these resources are depleted the people who were directly and indirectly depending on them for employment become jobless.
The high inflation rate has made it very difficult for many companies to sustain their production processes and at the same time keep their staff at work. Many businesses have closed down as the costs incurred are much higher than the profits realized. This means that the final result is nothing short of losses and wastage of resources (Brophy 135). On the other hand people have taken loans from banks in order to counter the effects of inflation but this proves futile as the high interest rates on loans deprive them the profits realized. Banks also have not been left out as they are forced to increase their lending rates to the clients in order to sustain their operations. This in turn discourages people from borrowing money from these financial institutions forcing them to close down and more workers are laid off leading to unemployment.
Furthermore, the education system being used in many countries is based on theoretical concepts. It has ignored the practical aspects of skills and knowledge and therefore converting these theories to real use in the job market becomes a tall order. Many students graduate with very remarkable grades, but use most of their time looking for suitable employment (Brophy 112). Some have been blinded by the fact that they are educated and have become too selective in their choice of work. They ignore simple and manual labor on grounds that they are educated and need respectable work. This creates temporary unemployment as thousands of graduates become jobless while they wait for their star to shine.
Lastly, the world is currently being faced with numerous terrorists attacks that have threatened the existence of human life. For instance the terrorist bombings in the World Trade Center in America (September 11th, 2001) threatened international investments in cosmopolitan countries and cities. This is because the costs incurred in the restoration of the businesses and injuries incurred are very expensive (Powers 84). It is estimated that America suffered a loss of about $ 95 billion in terms of losses to the city of New York in jobs, salaries, taxes, damage to infrastructure and costs of cleaning the city. In addition, the insurance industry suffered a loss of about $ 40 billion while the global market suffered an incalculable amount. Such terrorist activities deter investments that in turn limit the potential of creating employment opportunities and so many qualified people are left jobless while investors fear the safety of their businesses.
However, the high rate of unemployment can be controlled by careful family planning to regulate the high population growth rate. In addition, the government should enact laws that govern the use of natural resources to avoid wastage and misuse. Learning institutions should adopt education systems that produce manpower that suits the job market. Security should be given high consideration in national budgets to provide secure investment opportunities in all countries to foreigners and the locals.
Conclusion
Unemployment has resulted to the rise of many social, economic and political evils and every one should play their roles in ensuring there are available opportunities for qualified candidates. Unemployment lowers the Gross Domestic Product due to high dependency on the working population hence limiting national growth, but with careful long and short term planning many states will successfully fight unemployment.
Works Cited
Brophy, Tom. Little Victories: Conquering Unemployment. New York: CreateSpace, 2010. Print.
Cottle, Thomas J. Hardest Times: The Trauma of Long-Term Unemployment. Massachusetts: University of Massachusetts, 2003. Print
Powers, Sarah. Unemployment Doesnt Have to Suck. New York: Sarah Powers, 2012. Print.
Stringham, Jim. The Unemployment Survival Guide. Boston: Gibbs Smith Publisher, 2004. Print.
