Here is good news for you: according to the New York Times, the unemployment rate in America dropped to 7.7% which is the lowest rate in four years. But is this rate low enough? The answer is no. The labor market is far from recovery. There are around 11 million people who still need jobs. Throughout American history of unemployment, The United States has experienced 11 recessions since the end of the postwar period in 1948. The U.S. unemployment rate rose steadily from 5% in January 2008 to a peak of 10% in October 2009.
For college students, when we graduate and are getting ready for the taste of the real world, we will find out that the real world is not easy and it is not always fair. Good jobs are very few and far between, especially during the high unemployment rate period.
The reason we care about unemployment so much is because the unemployment has many bad influences. First, the unemployment has psychological consequence. According to the Society for the Psychological Study of Social Issues: the stress of unemployment can lead to declines in individual and family well-being. The burden of unemployment can also affect outcomes for children. The stress and depressive symptoms associated with job loss can negatively affect parenting practices such as increasing punishment. As a result, children report more distress and depressive symptoms.
Second, the unemployment affects the social stability. The unemployment will result in low-quality housing, underfunded schools and lack of money, and all these factors can link to the increase in the property crime.
The unemployment also causes the loss in consumer spending which is the significant driver of economic growth.
The main reason of unemployment is the lack of demand. There are several reasons that cause the demand is less than supply. The first reason is high tax rate. Businesses need to pay more tax in America than many other countries, and if the costs that companies need to pay are too high, the companies may cut some jobs in order to reduce the training and wage costs.
Since the tax costs and wage rates are very high in America, businesses may choose to move their companies to other countries, such as china and India, thus leading to huge amount of job loss in America. For example, the labor costs in China are much lower than in America, so if one business chooses to outsource some parts of the company, it will save lots of money, but decrease the potential job opportunities in America.
Automation also affects the demand. The technology plays more and more important role nowadays; hence, people are placed by machines. For example, there are many self-check machines in groceries and airports, and these turn out the decreases in needs of jobs.
In general, employment is still a big problem in America. The main reason for unemployment is the lack of demand. The unemployment has psychological and material influences for people, and it also affects the national economy and social stability. We all want jobs; we all want better lives. Job does not mean anything, but without a job, what can we do as college students? Not only for us, but also the family members and friends around us; we need chances to prove ourselves, and enjoy the life in the steady environment.
Courtney from Study Moose
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