Jahslyn Barrack
Cindy Rogers
English 11
13 March 2015
Unemployment in the United States
In this country we call home, hundreds of thousands of people are struggling to
put food on the table each night. Countless numbers of individuals are unable to keep a
roof over their head, let alone provide for a family. Many are desperately seeking to
progress in life while maintaining stable income. However, the unfortunate truth is that
many of those trying to make it in the world, cannot. The reason behind this adverse
reality is due to the state of employment of the country, or rather the lack of. The absence
of adequate jobs available means that many people are left either without a job, or are
underemployed. While it is on the decline, the unemployment rate is still something that
must be fixed, or brought to an even lower number. The current unemployment situation
in the United States is a serious and major issue that American citizens face.
“Unemployment” is anyone age sixteen and over who is “looking for a job, and available
for work” (bls.gov). This means that people of all ages, young or old, make up the working
population and, if out of a job, the unemployed population. However, if one is not actively
seeking a job and is not currently in a job, she does not count as unemployed. Alongside
unemployment, a paralleling occurrence called “underemployment” coexists.
Underemployment is the state of being in which those who are currently employed are
not receiving enough hourly work, or those who are fit for higher up careers are unable to
find positions in those fields. Not receiving enough work can be in part by economic
crunches by the employer, such as not being able to pay for many employees to be
working full time. Underemployment can also include those who fall into a separate
category in which they have college degrees in certain fields, but not enough career
positions are available for them. This state of underemployment means more people will
be resorting to unstable, low level jobs, such as fast food. These types of unreliable
minimum wage jobs are often times not very promising and may not yield enough pay to
afford necessities. In some cases, if an employee manages to keep a low level job for a
while, there is still a chance that they can be terminated from their position. Companies
do not want to pay higher wages and raises for long term employees when they can pay
the minimum for new entry-level workers desperate for a job. This unstable chain reaction
can lead to unemployment.
Table 1
Taking a look at the numbers of unemployment shows that as of February 2015
there are currently 8.7 million unemployed persons in the United States (table 1). In 2014
there were over 1.6 million unemployed persons in the United States. In addition to those
8.7 million, there are “741,000 discouraged workers – workers not currently looking for
work because they believe no jobs are available for them” (Louis Efron). This quarter of a
million population is not counted into the unemployment rate, since unemployment is
qualified by those who are “actively seeking”, which contradicts with the mindset of those
some 740 thousand. To truly understand the real statistics of unemployment, one must
also factor in this large group of people in addition to the unemployment rate percentage.
The current percentage of unemployed persons in the United States is 5.5%, “the lowest it
has been since 2008” (Chico Harlan). While this percentage may seem low, it is necessary
to note that the number of unemployed citizens is still in the millions. Comparing it with
previous years, the unemployment rate has been healing over time, progressively getting
lower since 2011 as seen in table 2. This healing shows that the U.S. is on the right path to
combating unemployment and helping people get back into jobs.
Table 2
There are many measures being taken in order to help push the unemployment
rate even lower than it ever has been before. The main operation being carried out to
help fix this unemployment crisis is the addition of new jobs. New job openings allow for
growth of not only companies and businesses, but also for those who are currently
unemployed or underemployed. A surge of new job openings is a sign of hope for those
who are unemployed as well as to those who have given up in the job search. Besides
opening up new jobs in entry level positions, there have also been more efforts to open
up jobs in stable career fields that make use of college degrees and higher level training.
More opportunities for careers in these areas means theoretically less Bachelor and Ph.D.
holders working in McDonalds and more of them actually working in their designated jobs.
This shift in positions will mean more jobs available for those without college degrees and
more openings in less specialized fields of labor (Harlan). Thus, in turn, the unemployment
rate will become even lower with the addition of more jobs. As Efron states, “The more
high skilled jobs there are, the lower both unemployment and underemployment will
become”.
In 2014, over 2.65 million jobs were added, with monthly wages increasingly
slightly compared to 2013 (Harlan). Jobs were, and are, being created in a variety of
different fields, the most popular being retail. “Employment in retail trade rose by 46,000
in January. Construction continued to add jobs in January (+39,000). …health care
employment increased by 38,000.” These three fields were the most significant
contributors of January 2015, followed by food service jobs and professional and technical
services (bls.gov). The rate at which the government is creating jobs has been astonishing,
and has been contributing to relieving the problem we have been facing for years.
According to Harlan, “[The] U.S. economy added 321,000 jobs in November, the best
figure in nearly three years, keeping the country on track for the strongest annual job
growth since the late 1990s”. The U.S. has been consistently adding jobs at a rate that is
cutting down the percentage of unemployed persons. At this rate, the US would need to
create over 4.9 million more jobs to satisfy employment rates that parallel the population
growth.
If the country continues to add jobs to a degree it has been doing in the past, the
country may see an extremely significant period of growth and low unemployment rate in
a predicted 5 years (Alexander Kaufman). While it has been rather stagnant from the time
of October to January in terms of the 5.7~5.5% rate we have seen, as shown in table 3,
there are slight changes down to the hundredth and tenth percentile (bls.gov). This lack of
change can be interpreted as neither good nor bad, as it means that while the numbers
are not getting much lower, they are not getting any higher either. While measuring the
rise and fall of the unemployment for the past months, Jeff Stibel predicts the percentage
will reach a low of 5% by July of this year. Surely, if things continue to go as they are, this
is not an unachievable low.
Table 3
When it comes down to the economic aspects of unemployment, there are some
cause and effect patterns that can be noted, as well as some significant changes over time.
One major improvement derived from the decreasing unemployment rate is the The
number of individuals filing for unemployment aid. Many individuals out of jobs rely on
this aid to live somewhat securely with at least the basic necessities. Aid and benefits from
the government dropped over 43,000 in the month of January 2015, the biggest drop the
country has seen since 2000. (Reuters) This drop in aid requests will allow for more
spending from the government to go elsewhere to help others and to problems that need
fixing. Overall, this drop will allow for a little bit of cushioning in regards to how much the
government has to give out in unemployment finances each month. This drop in financial
assistance requests suggests that the amount of jobless citizens may be decreasing, as
they have been able to find positions in the newly created jobs and make money for
themselves.
In concurrence with the decrease in financial aid requests, there are also
other economic aspects tied to combatting the unemployment rate. One of these aspects
pertains to minimum wage and the connection it has with unemployment. Increased wage
for the working labor class will help them secure and hold jobs which in the long run
means there will be less people who have to apply for government-issued unemployment
aid. There are strong actions pushing for higher minimum wage, which may help relieve
unemployment rates (Stibel). We can already see in many states, such as California, that
minimum wage is raising, as it raised to $9 in July of 2014 and will be raised to $10 in
January of 2016. A higher pay allows for more spending, which in turn helps keep the
economy flowing. More spending also means more workers needed to keep up with
demands. For example, “Car sales jumped 6 percent last year to the highest level since
2006,…Analysts forecast that sales will reach 17 million this year, near the record of 17.3
million set in 2000. That should lead to more jobs at automakers, parts suppliers and
dealers” (Kaufman). This sort of pattern will not only happen in the auto industry, but in
other industries as well. As quoted by Stibel, “For unemployment, the bottom line is that it
is falling faster than predicted, and that means there are more jobs available and there is
more money cycling through our economy. We’re not yet exactly where we want to be,
but the future is certainly looking brighter.”
Despite being in a position on which there is a need for improvement, the current
United States’ standing in terms of unemployment is relatively good position. Comparing
the United States and Europe, Europe has an unemployment rate that is two times worse
than that of the United States, putting us higher up in the ranks. If we look to Asia, Japan
is currently in an economic recession, trying to get back on its feet while the value of the
Yen continues to weaken, leaving room for potential increase in the unemployment rate.
Many other countries are struggling, however, so it is not completely bleak in terms of the
situation in the United States (Harlan). There is still much room for growth.
Overall, the United States’ current unemployment situation continues to be a
problem to many working class citizens. While the percentage may seem like a low
number, it is truly a large amount when one looks at it by the number of 8.7 million.
Certainly it is improving, but the United States must push harder to continue to reduce the
number down to an even lower percentage. Many people are still finding themselves out
of jobs or being forced to work as an involuntary part-timer due to underemployment
circumstances. Many jobs are being added each month, but there is still a need for
adequate jobs that meet the needs of those who have college degrees and such, leaving
room for new unemployed citizens to find their way back into the work and labor force.
Taking a look once more at the numbers, the unemployment rate is starting to
stabilize once more, and meaning that there is still space for even more decrease. As
Harlan said, over 2.65 million more jobs were created in 2014, and approximately 4.9
million more would satisfy the need for positions desired by unemployed persons. Clearly,
the rate of addition means that continuing as it has been should ultimately bring the
unemployment rate to an all time low in just a few years or less. More jobs means more
people will be able to spend, the flow of money will circulate through businesses, and the
economy will flourish. A flourishing economy will lead to not only a healthy country, but a
need for more work to satisfy the heightened needs of the United States people.
There are many ideas for solutions on how to solve the unemployment problem in
the U.S., but all require time and innovative thinking in addition to new jobs being created.
More and more the United States should see an increase in a strong work force.
Paralleling the increase, we can predict a decrease in those struggling to live a day-to-day
lifestyle. The current situation of the unemployment in the United States is still not
something to take lightly, as it will truly not be over until the unemployment reaches
lower than it has ever been before. With enough hard work, the problem of
unemployment in the United States can be overcome.
Works Cited
Efron, Louis. "Tackling The Real Unemployment Rate: 12.6%." Forbes. Forbes Magazine, 20
Aug. 2014. Web. 12 Feb. 2015.
<http://www.forbes.com/sites/louisefron/2014/08/20/tackling-the-real-unemploymentrate-12-6/>.
"Employment Situation Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor
Statistics, n.d. Web. 11 Feb. 2015. <http://www.bls.gov/news.release/empsit.nr0.htm>.
Harlan, Chico. "U.S. Economy Added 321,000 Jobs in November; Unemployment Rate
Holds at 5.8%." Washington Post. The Washington Post, 5 Dec. 2014. Web. 13 Feb. 2015.
<http://www.washingtonpost.com/blogs/wonkblog/wp/2014/12/05/u-s-economy-added321000-jobs-in-november-unemployment-rate-holds-at-5-8/>.
Kaufman, Alexander C. "U.S. Adds 252,000 Jobs In December; Unemployment Rate
Declines To 5.6%." The Huffington Post. TheHuffingtonPost.com, 9 Jan. 2015. Web. 12 Feb.
2015. <http://www.huffingtonpost.com/2015/01/09/december-jobsreport_n_6438126.html>.
Reuters. "New Claims for Jobless Aid Hit Lowest Level Since 2000." The New York Times.
The New York Times, 29 Jan. 2015. Web. 13 Feb. 2015.
<http://www.nytimes.com/2015/01/30/business/economy/new-claims-for-jobless-aidhit-lowest-level-since-2000.html?ref=topics>.
Stibel, Jeff. "Why the Falling U.S. Unemployment Rate Matters." Harvard Business Review.
N.p., 18 Nov. 2014. Web. 13 Feb. 2015. <https://hbr.org/2014/11/why-the-falling-u-sunemployment-rate-matters>.
“Table 1” Unemployment History. Digital image. US Unemployment. Department of
Numbers, Feb. 2015. Web. 12 Mar. 2015.
<http://www.deptofnumbers.com/unemployment/us/>.
“Table 2” Unemployment Rate. Digital image. US Unemployment. Department of Numbers,
Feb. 2015. Web. 12 Mar. 2015.
<http://www.deptofnumbers.com/unemployment/us/>.
“Table 3” "United States Unemployment Rate | 1948-2015 | Data | Chart | Calendar."
United States Unemployment Rate | 1948-2015 | Data | Chart | Calendar. N.p., n.d. Web.
11 Feb. 2015. <http://www.tradingeconomics.com/united-states/unemployment-rate>.