UNEMPLOYMENT RATE

Unemployment Rate

Unemployment Rate

Unemployment has become a rising concern for all Americans. The unemployment rate in the United States was last reported at 9.1 percent in September of 2011. Late 1940s till 2010, the unemployment rate in the United States averaged 5.70 percent. It reached a historical high of 10.80 percent in November of 1982 and a record low of 2.50 percent in May of 1953 (USBLS, 2011). Even the employed feel vulnerable to the prevailing conditions of unemployment. The article under discussion highlights the ignorance of the federal government and all alike who have shifted focus on the debt crisis instead of issues like unemployment.

All of us know of a friend or neighbor who is desperately trying to find a job, but all in vain. The writer gives various examples of people who have lost their jobs and their standard of living has deteriorated. The situation further aggravates when they cannot find employment as there are more job seekers than vacancies. He states that the ratio between a vacancy and unemployed people is 1:4.

There is also the issue of underemployed people, which the article briefly discusses. An underemployed person is one who is employed, but not for a job he/she has qualifications for. They may be in a position much less than their experiences, capability and education. This affects the self-esteem of people as they feel their skills are not being utilized to their full capacity. They become frustrated and do not perform well in their current job.

Unemployment has psychological effects, which lead to individuals feeling stressed. This can result in health issues in the long-term. Unemployed people can become suicidal as most have a family to support and the failure to do so can lead them to kill themselves.

The major concern is that no one is addressing the rise in the unemployment rate. Even the media have lessened their reports on the issue, “A study by National Journal in May found something similar: newspaper articles about “unemployment” apparently fell over the last two years, while references to the “deficit” soared” (Kristof, 2011, pp.01) Even though debt is a serious concern for the country's economy, getting people back to work is even more important.

This article can be related to the Keynesian model of unemployment. According to the Keynesian model, the government has the power to control unemployment and inflation with a Keynesian policy. A high inflation rate can be tolerated as it would result in lower unemployment. The inflation and unemployment would have a trade-off. For example, monetary policy and/or fiscal policy (i.e. deficit spending) could be used to stimulate the economy, raising gross domestic product and lowering the unemployment rate. If we move along the Phillips curve, it would mean a higher inflation rate and the enjoyment of lower unemployment rates.

Unemployment is recognized as the worst economic evil as it leads the society to poverty and makes the living standard of people lower. It also deters income dispersion and leads to political and socioeconomic ...