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Unemployment in America

The economy of the United States of America, being one of the largest and most powerful countries in the world, is considered as one among the strongest and most influential economies in the world. During the past generations, the United States economy was one of the fastest growing in the world. And as such, its economic success has always been translated towards success in the fields of politics and military leadership. However, during the last few decades American leadership, in terms of economic supremacy, has started to falter.

The rise of new developing countries and their successful merge into the international economy has threatened the growth and development of the American economy. Through the years, the emancipation and emergence of new markets created better opportunities for them, while limiting the avenues for further growth for the American economy. The decline in the economic growth in America can be reflected in the rocketing unemployment rate in the United States. For example, the increase of statistics in professionals from other countries resulted to the decrease in the need for American employment.

In addition to this, the decline of manufacture and industry sectors in the United States limited the number of American workers needed to fulfill these jobs. As such, the growth or decline of the American economy is directly related to employment statistics in the United States. A change in economy hastens the need for additional or cut-down in the workforce needed to sustain economic operations. There are three probable reasons that can be attributed to the increase of unemployment rate in the United States. First, the changes and development in the market caused stagnation for the people.

At certain instances, people were not able to properly adjust to the innovations made through the years. In addition, the policies meant to weaken the control of government over the private companies’ structure for hiring and changing employment demands also contribute to the unemployment rate in United States. Second, the American industries and manufactures were left stagnant. Closely related to this, the emergence of new markets and the increase of foreign professionals dominating the international market tightened the competition for American workers and professionals.

And the lastly, the United States government were also inept in rectifying the errors at which the United States economy were left to suffer rather than prosper. Economic and political changes became less visible and viable for the American growth. In this paper, these three variables will be expanded enough to support the claim that the decline in the American economic standing has greatly affected the unemployment rate within the United States. Changes in the Labor Market Over time, the American economy has undergone certain changes in the labor market.

From one mode of production to another, different processes have been developed and utilized. However, such changes in the structure and operation of the labor market can affect the demands in the workers for a certain industry. In addition, changes in labor market may also require different skills in order to properly adjust to the new processes and standards incorporated within such changes (“The Effect of Changes in Labor Markets on the Natural Rate of Employment,” 2002). During the past few decades, people were able to witness how fast technologies have come and go.

This distinct rapidness of changes taking place in the economy may weaken the competitiveness of the workers. In addition to this, employers may decide to shift their demands for workers in order to adjust to the calls of the economy. Technological innovations in the United States worked towards the creation and elimination of jobs for the people. While the development of new technologies brought a need for renewed manpower thus creating new jobs, it has also caused displacement for a larger fraction of the workers.

In addition to this, new technology coming in the forms of new machineries and more sophisticated means of production, meant that more laborers will be displaced to give way to the proliferation of faster and new means of production. Only those who are young enough, more competitive and more adept to adjust to these innovations will be the ones to benefit from these developments (“Policy Debate: Do technological advances result in higher unemployment,” 2002). Moreover, these developments in the technological field also can contribute to the volatility of jobs available to the market.

The rapid rate at which inventions and technologies emerge almost periodically, jobs in the market become more volatile and less stable. The advent of new technologies would also mean that the industry will have to make necessary changes in adapting to the new technology, replacing the old and worn out mode of production that used to be prevalent. As such, industries also change alongside the changes in the mode of production. Technological changes rendered the manpower sector to become less needed in the industry to function properly.

The advent of new innovations gave rise to a new social class that was formed based on the people’s ability to adjust and maximize the benefits of new inventions. While this social class is being established, the value that was used to be attributed to the working class devaluated, and in time was rendered unworthy of choice (Martin, 2002). These changes have been proven to be detrimental to the majority of the working class. Only 20 percent of the working population, composed of intellectuals and high-skilled employees are expected to prosper and take advantage of the situation.

However, the remaining 80 percent of the population will be left in stagnation as the technological innovations are being continuously developed. In line with these technological innovations being adopted within the industry, owners of business enterprises and establishments also make necessary adjustments to cope with the growth in the field of industry of manufacturing. Over time, unions and organizations advocating for the rights of workers and laborers have already decreased.

This provided the employers with a margin of advantage over the workers. The weak organization of unions, alongside the decrease in the minimum wage and the flexibility of compensation system in the industry have made it easier for company owners to change hiring and employment standards from time to time (“The Effect of Changes in Labor Markets on the Natural Rate of Employment,” 2002). As such, the changing demands and requirements used by various companies in their hiring process could act to the disadvantage of the workers.

At any given time, companies may change their demands and standards, thus rationalizing the need to retrench employees that are no longer able to fill the new requirements, or those employees who come in excess to the actual manpower needs of the company in order to facilitate their business. Stagnancy of American Industries In the past, the American economy and employment have been boosted by the growth of industries and capitalist market economies. The American economy has always been considered as one of the strongest and most influential in the world.

However, during the recent times, the United States economy has come to a slow down. Although the United States government has been keen and rigid on keeping the real facts from the general public. In 2007, the jobs that were used to be kept available from the goods-producing sector declined by a large percentage. The jobs produced in the private sector comprised only a small percentage. In addition, the jobs created within the period were low-paying jobs. On the other hand, the government sector also failed in producing enough jobs for the qualified working class (Roberts, 2007).

In contrast to the fast growth of the United States economy after the Great Depression, in the 21st century the American economy experienced one of the most difficult stages in its history. The United States economy was unable to produce new and efficient jobs in the export and import industries. However, the United States economy rather became more focused in the production of domestic jobs which became unable to minimize the number of jobless Americans at a certain level.

Consequently, the scarcity of high paying jobs, the absence of growth in more productive sectors available for the upper and middle class workers rendered great difficulty in saving the dying economy of the United States (Roberts, 2007). United States’ inability to give way to the growth of new markets not only caused economic stagnation. This occurrence also created a direct impact amongst the job seekers and those who are currently employed but are not satisfied with their jobs. Unemployment became one of the most serious issues, but underemployment also posted the same alarming state in the economy.

Due to the depressing state of job scarcity, more people opted to take jobs that were not based on their qualifications. In the end, people who are previously rather lost the initiative and drive to do better in their jobs because of unsatisfactory returns from their jobs. One of the direct causes of the United States inability to develop new markets for their local economy is the decision of American companies to outsource their production to foreign markets. In a nutshell, this decision may have produced positive reinforcement in the United States economy.

In outsourcing production processes to foreign countries, American-owned corporations relatively spend less than the usual and standard cost of production. However, in a more critical outlook in the issue, this decision has been proven to have incurred more detrimental outcome for the United States economy rather than benefit its economy. Because of the substitution of foreign labor in replacement for American labor, career opportunities and job growth that are originally intended for the benefit of American workers shriveled and decreased.

Through outsourcing of production, jobs are being made available for foreign workers. Hence, lessening the job opportunities for local American workers. In addition to this, the United States Gross Domestic Product is transferred in the imports statistics. This in turn, became a double blunder for the American economy. This economic strategy rather contributed to the growing trade deficit being suffered in the United States economy (Roberts, 2007). Current data shows that the United States economy has been suffering large trade deficit. In total, the United States economy has a trade deficit amounting to $838,271,000,000.

In every art of the world, the United States has a huge-standing trade deficit. One of the great contributors in this trade deficit is attributable to the oil dependency of the United States on the Middle East oil reserves. Over time, the American economy has been impaired by a false security that oil independence left upon them. United States Economic Blunders The increasing unemployment rate in the United States is attributable to the economic policies imposed by the American government. Most of these policies were implemented during the last twenty five years.

Consequently though, in between this period, the United States economy met the start of its slowdown. The Federal Trade Policy starting with the NAFTA and continuing within the period of the General Agreement of Tariffs and Trade, greatly contributed to the economic slowdown in the United States. Without the tariffs set in the international market, prices for finished goods greatly lost its original value. Hence in order to compete and to be able for the manufacturers to sustain their business, workers had to be entrenched and laid off (Exilarch, 2005).

The Federal Monetary policy also added to the number of unemployed workers. Due to the high value of American currency compared to other currencies in the foreign markets, foreign consumers are unable to patronize American products, hence slowing down profit and sales for American manufacturers. In turn, owners of American companies cut cost and decrease the workers and laborers employed in their companies (Exilarch, 2005). The Federal Immigration Policy also increased the difficulty for American workers to avail of jobs.

Massive legal and illegal immigration in the United States intensified competition in the market and among those looking for jobs. As such, due to the influx of Third World immigrants, there have been less jobs open for the American workers (Exilarch, 2005). The Federal Tax Policy on the other hand also worked against job seekers for the American population. Through this policy, American enterprise owners are being forced to outsource jobs from foreign countries due to the large amount of taxes being imposed on American employers (Exilarch, 2005).

As such, instead of encouraging American companies to hire American workers, they opt to hire foreign workers for a low-paying job instead. In addition to these policies, one of the most pressing issues that is contributing to the increasing unemployment in the United States is the presence of oligarchs in the country. Through these oligarchs that are dominating the American economy, large cartels are being allowed to operate and take charge in the activities of the economy (Nordell, 2007). Economic Challenges

In order to address the issue and emancipate the United States’ current condition, certain actions are to be made. Indeed, the American economy needs critical attention to be able to reverse the negative effects imposed on the United States economic conditions. First, the root of the weak job market must be addressed. Weak job market drives people’s enthusiasm for economic opportunities. As such, the main reason behind the weak opportunities being offered to the American job seekers must be properly addressed (Weller, 2007).

Second, the United States government must note that real income gains provided for the people. Real income must be kept abreast with the high volatility rate in the economy. The wages earned by the workers should be sufficient and competitive in comparison with the high volatility in the economy. In addition to this, the United States’ trade deficits and foreign indebtedness must be properly addressed. This must be done in order to provide the people with a more stable job prospect and ensure that the economy will suffer in less economic volatility (Weller, 2007).

And most importantly, the presence of government oligarchs and cartels must be lessened. Important jobs and opportunities are being driven away due to the government’s unfair treatment for people belonging in different classes. Resources and opportunities must be made available for every citizen in the United States and work for the emancipation of the public in general.


Exilarch, L. (2005). The Real Unemployment Rate is 23%: How and Why Jobs are Vanishing from America. Exile. Retrieved September 4, 2008, from http://www. exilemm.

com/e-sub-realunemployment. shtml Martin, W. (2002). The sinking of american labor. Kingsport Times. Retrieved September 4, 2008, from http://www. sullivan-county. com/identity/unemployment. htm Nordel, G. E. (2007). Unemployment in America. Working Minds. Retrieved September 4, 2008, from http://www. working-minds. com/WMessay73. htm Policy Debate: Do technological advances result in higher unemployment? (2002). South Western College. Retrieved September 4, 2008, from http://www. swcollege. com/bef/policy_debates/unemployment. html Roberts, P. C. (2007).

American economy: RIP. Information Clearing House. Retrieved September 4, 2008, from http://www. informationclearinghouse. info/article18350. htm The effect of changes in labor markets on the natural rate of employment. (2002). Congressional Budget Office. Retrieved September 4, 2008, from http://www. cbo. gov/ftpdocs/33xx/doc3367/LaborMarkets. pdf Weller, C. (2007). Five Economic Challenges That Need More Policy Attention. Center For American Progress. Retrieved September 4, 2008, from http://www. americanprogress. org/issues/2007/01/state_of_economy. html

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