Unemployment Within the 20th Century

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Table of Contents

Introduction
Description
Unemployment in the 20th Century
Counteraction
Predictions
Conclusion
Works Cited

Introduction

There are the highs and lows in civilization’s history. That is a naturally determined law, which is a stimulator for evolution. Of course, there are drops, influencing humanity more significantly. Economic instability is one of those that we feel the most. At this point, unemployment affects every single person, and its consequences force people to seek additional ways of solving the problem. The purpose of this research is about showing the issue of unemployment in the 20th century, the results that it led to, the human struggle against unemployment, and the predictions of unemployment in the future.

Description

Unemployment occurs because of the lack of vacancies and it pushes people to seek jobs more actively. Moreover, it is explained that “unemployment is often used as a measure of the health of the economy” (“Investopedia: Unemployment” par. 4). Of course, the influence of joblessness on the economy is significant. There is a straight relation between the number of unemployed citizens and the funds that the government is required to spend for their support. At this point, not only the financial income loss takes place, but the additional costs also appear. An unemployed human would be saving money, rather than spending them on him and his family. Therefore, it leads to the point when the home economy suffers from the decreasing of the money turnover. A corresponding percentage rate measures the actual level of unemployment and the percent of jobless citizens in a correlation with those who are employed. Many specialists assume that the reason for joblessness is in the interventions, such as minimum wage laws, bureaucratic work rules, taxes, and others. Considering the fact that unemployment has a cyclical nature and repeats from time to time, it still could be predicted beforehand, and it may help to prevent the global devastating effects. Even if there is no commonly accepted theory concerning joblessness, many analysts declare that the real reason for the absence of jobs is present because of the low wages level and that when it becomes lower than the livable indicator, many individuals lose their interest in having a job. As it is said, “Increased taxes and the insecurity about their own work may affect the spending power of the working people as well and they too may start to spend less than before thus affecting the economy and also the society in a negative manner” (“Job Interview: The Effects of Unemployment on Society and the Economy” par. 4). A sharp decrease in employment assistance massively affects the numerous spheres of life, including living standards, health, and education.

Unemployment in the 20th Century

The early 20th-century unemployment was mostly caused by the great depression, which took place at the beginning of the 1900s. The time of the Great Depression is known by the ravaging loss of jobs, with the rate of 20 percent. Further, in the year 1933, the rate of unemployment went higher and was already equal to 24.9 percent. All of the society niches, except for those who were farming, were at the risk of becoming jobless. As it is stated, the rate of average unemployment lowered in 1940, with an indicator of 14.6. (“Love to Know: Early 20th Century Unemployment” par. 4). Strangely enough, in a comparison with the workers of the time of 1970s, in the year 1910, the employees had their monthly unemployment rate 37 percent higher, which made them consist in the list of unemployed. At the beginning of the century, even if the wages were too low, there was strong working competition, because of job insecurity and immigration. The unemployment issue also influenced those who had jobs, as they were not satisfied with the working conditions and long working weeks.

Further, the joblessness cases had some gender issues, as well as racial.

The unemployment percentage for nonwhite people was a lot higher than the rate of white representatives from 1950 to 1970 and in the year 1990.

Counteraction

In 1935, the federal government provided the opportunity of unemployment insurance, managed on the level of the state, as the reflection of the Social Security Act. The companies that had a higher degree of layoff received higher rates of taxes, in a comparison with the firms that had a low level of discharge. The seasonal differences concerning employment went through a fall in many states with the high rate of experience level. It was declared that “likewise, seasonality in the construction industry fell by two-thirds between 1929 and 1947 to 1963, a much faster rate than in Canada where firms were not penalized for laying off workers” (“U.S. History: Unemployment” par. 9). The numerous soap kitchens were arranged by the US government across the country. By the efforts of Franklin Delano Roosevelt, unemployment weakened in 1937, and it had an indicator of 14% – 15% percent, but unfortunately, that level dropped to 17% already in the same year. Despite the losses, Franklin Roosevelt has managed to increase the industrial outcome to the year 1939. At a certain time period, there were also working camps outside of the cities, which included more than 3 million people of young age and that were organized by the CCC. Along with that, the Public Works Administration was formed. Its range of work included the building of public objects and bridges. Also in the year 1933, the Federal Emergency Relief Act was providing work, such as road repairing and schools and parks modification, to help those who are jobless. Considering that there was significant progress, still, it is stated that the end of depression occurred only with the war beginning, despite all the attempts of Roosevelt (“A World History Encyclopedia: A Brief History of Unemployment” par. 17). The Social Security Act also created new opportunities and perspectives for jobless citizens by implementing the special insurance scheme in 1953. In the year 1940, some of the employees became members of unions, while preparing themselves for the upcoming changes. As it is declared, “the Bureau of Labor began collecting data on work conditions, compensation, and more, and stepped in during World War I” (“Love to Know: Early 20th Century Unemployment” par. 8). The purpose of the Bureau was in improving the wages and social insurance programs.

Predictions

It is predicted that from the year 2016 to 2020, the percentage of unemployment would be equal to 5 percent. Because of the unpleasant consequences of the Great Recession, the number of jobs received a great destabilization. The unemployment rate that was equal to 10% in 2009 continues to stay at a high level until this day. Based on this, it is supposed by the economists that it would not go any lower soon and that the overall indicator of joblessness remains quite steady. It was also stated that according to the forecasts that were made in December 2013 by the Federal Reserve, the rate would be equal to 6.3% before the year ending, without having a chance of falling lower than 5.5% to the end of the year 2016 (“Harvard Business Review: Unemployment Is About to Fall a Lot Faster than Predicted” par. 1). On the other hand, if we would use the model of the alternative job growth projection, we would receive a different picture. According to its results, the unemployment percentage in the US would fall in the middle of 2017, and it would correspond to the indicator lower than 5% that will influence the economy in the USA. The predictions of joblessness are mostly based on previous experience; however, such forecasts are not always fully justified, as they may lead to confused indices. Strangely enough, today we have significant growth of potential in the smallest business, which would promote it to increase the hiring rate that could leave its imprint in the future.

Conclusion

Despite all the struggles that the people face during the economic instabilities, they still find a way how to survive and to guarantee security for themselves, as well as for their families. The real power is hidden in unity. And when people unite for the bright idea, freedom, and peace, there are no borders that are capable of stopping them. During the whole earth history of humankind, people always have been trying to protect their rights, even if it had a great price for them. Hence, while looking back to the history of all the difficulties that humanity went through, it becomes clear that no matter what, the word human means a lot more than an ordinary person often realizes. That is the truth, the key to all of the doors that exist in the Infinite Universe.

Works Cited

A World History Encyclopedia: A Brief History of Unemployment 2016. Web.

Harvard Business Review: Unemployment Is About to Fall a Lot Faster than Predicted 2016. Web.

Investopedia: Unemployment 2016. Web.

Job Interview: The Effects of Unemployment on Society and the Economy 2012. Web.

Love to Know: Early 20^th Century Unemployment 2016. Web.

U.S. History: Unemployment 2016. Web.

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