Unemployment

[Essay Number]

Unemployment

Introduction

Unemployment is a situation where individuals/people who are actively searching for jobs by various means are not able to find them (Brophy, 2010). Unemployment rate is the measurement by which the prevalence of unemployment is calculated. It is an important tool which is used to determine the state of the economy of any particular country. Decades ago, before the industrial revolution in America, production of goods and labor was not systematic as peasants produced commodities for themselves and for their landlords benefit. As a result, they were unpaid, meaning they were neither unemployed nor employed in the contemporary sense therefore, no unemployment existed in the country. During the industrial revolution, a systematic employment structure was needed to organize the labor force and economy (Maddison, 1982). This led to employers seeking cheap labor, which further enhanced the concept of unemployment and labor exploitation.

In 2008 due to the global recession, the private sector in the U.S. experienced a great depression. Ever since, unemployment has remained an issue and a problem for the government, private and public corporations and individuals alike (Brophy, 2010).

Discussion

Identification

Unemployment is a vicious cycle which may cause widespread poverty wherever and whenever it hits. It renders individuals unable to afford the basic needs, which further on affects small and large businesses alike. As a result, more and more employees are laid off from their jobs leading to there being no job security. Moreover, unemployed people cannot always afford to disburse their bills and maintain an acceptable standard of living which affects the economy as well as image of the country in the worldwide market. It also increases number of people who are homeless, as in the U.S. due to serious unemployment issues there are a lot of homeless people (Pigou, 2010). This additionally raises crime levels, suicide rates, etc, as a result affecting the social, cultural and political aspects of any country.

Individuals Affected by Unemployment

Unemployment has an effect on people from all walks of life. From factory workers who lose their jobs because the employers are closing down to business executives. Unemployment affects seasonal workers who have a specialized skill set for only a particular season as well as the elderly who may not be able to work in heavy industries and also people with a limited education background who are unable to work in any technology driven industry resulting from a lack of technical knowledge.

Types of Unemployment

As mentioned above, there are many 'types' of unemployment. Seasonal unemployment which invariably affects some sectors more than the others, such as the tourism industry. Structural unemployment which results from a disparity between skill sets of existing workers and the needs of the economy (Hoag, 2006). Such unemployment is also caused due to long economic recessions where the economy is unable to recover quickly. There are various other reasons for unemployment rates to rise which leads to severe damages within the political, social and economic framework of a country (Hoag et al, 2006).

Factors That Cause Unemployment

There are numerous factors that can cause ...