Principles of Economics-Macro
College of Central Florida
One of the enormous issues that has continuously troubled our government for ages is unemployment. Millions of people are out of work not just because they are lazy and like to steal the office stapler but because of the three kinds of unemployment. Depending on the economy and how well it is doing depends on who will and will not have a job at that moment in time. We have had three consecutive recessions so far that have put us through some tough times of eating ramen noodles and walking to our crucial far away destinations. Not only is it extremely tiring and stressful for the people who are just scraping by to make a little of a living but it also puts a lot of pressure on the back of the governments neck. The more people that are out of work the harder the government has to work and commit to making up new jobs and supporting them. That’s why it always helps to diversify your skills and knowledge so that you always have a greater chance of having a job even if there are not a lot hiring. This keeps the people from subjecting themselves to a life of crime such as prostitution and theft to provide food on the table for their families and pay off their mounds of bills only to still be struggling. Maybe if the economy grows at a substantial rate over the next few years and unemployment falls there should be a job for anyone anywhere who needs one. Not to say that there won’t be unforeseeable factors in the future that could knock us back a step or two like a fluctuation in the stock market or massive scale war but that doesn’t mean we can’t achieve our goal of creating a stable economy that will last.
Unemployment is defined as any person of an appropriate age who is looking for work and doesn’t actually have a place of employment yet. There are three kinds of unemployment that primarily occur and circulate the economy those being structural, frictional, and cyclical. Structural and frictional unemployment “make up the natural unemployment rate and the third rises when demand falls, usually during a recession. Some economists define as many as five additional kinds of unemployment, such as seasonal and classical. ” (Kimberly Amadeo). Structural unemployment is usually long term and the biggest and baddest of the three because it’s the hardest to get out of. Structural unemployment is when someone doesn’t have the right skills for a certain kind of job that needs to be done. An example of this would be from “Charlie and the Chocolate Factory” Mr. Bucket is laid off and replaced by a machine because the machine works faster and harder than him. Ironically enough in the end he ends up getting a job fixing the machines that don’t work anymore so he does end up finding a job that is more suited for him and his skill set. Frictional unemployment is basically the search time it takes for someone to find work again or even for the very first time. An example of this would be students who are graduating high school or college and need to find work to support themselves to start working on building their own lives. Cyclical unemployment is when there aren’t enough jobs for everybody due to a recession. An example of this would be an auto worker who is laid off because no one is buying enough cars because there is a recession and no one has the money to indulge in the finer things. Unemployment is monitored through an unemployment rate which is a calculation of the unemployed divided by the civilian workforce multiplied by one hundred. This formula does have a few flaws though because the unemployment rate doesn’t count discouraged workers or part time workers so in reality there could be more or less people unemployed than we realize.
The worst case of unemployment we’ve ever experienced was during the Great Depression. The Great Depression began “in the United States when the stock market crashed on October 29, 1929” (Mary Barile) not that there weren’t contributing factors involved but this was a biggie in the down fall of the economy. Millions of people lost their jobs because businesses just couldn’t afford to keep them around anymore and those who didn’t were basically payed nothing at all. Those who still had money stowed it away and waited for the depression to lift so they could restart their lives. The majority of people were living on the streets without food, water, clothes, or shelter. The shelters were generally made out of cardboard, crates, tarps, and cars. Suicide started to rise because people were desperate for an escape from the endlessness that was the Depression. During this time things started to get so unbearable that President Roosevelt decided to put together a program called the new deal to make more jobs for the people. These programs were the The Civilians Corp (CCC), Works Progress Administration (WPA), Federal Emergency Relief Administration (FERA), and the National Youth Administration (NYA). The CCC gave jobs to men, WPA created jobs, FERA provided aid, and NYA gave job training to those who needed it. Without these programs we would’ve been stuck in the sucky conditions we were already in for a few more trying years.
The unemployment rate used to be at ten percent while today it remains at a four point one percent. The economy is constantly growing and job prospects are improving that’s why there’s more manufacturing, healthcare, and mining jobs “the labor department reports that U.S. employers added 228,000 jobs in November, somewhat better than analysts had been expecting” (Scott Horsley). We are becoming a more independent country and are trying to pro produce our own goods so that our people will have more jobs to acquire so they don’t have to go overseas. In addition the government is also making more jobs through infrastructure projects and tax breaks. Infrastructure projects help develop bridges, roads, and gives people the jobs they need to build them while tax breaks puts more money back into the people’s paychecks so they have more money to spend. The more money that goes into the economy the more stable flow of money there will continue to be over time.
One day we will be able to achieve full employment and everybody who wants a job will have one and because of this we will be a more innovative, capable, and thriving country. We’ve had some dark times and because of this we’ve worked even harder to achieve a better tomorrow so that we would never have to experience that again. Every recession we’ve experienced has been a little less worse than the last almost as if they’re becoming more manageable. We learned from past mistakes and we’ve learned how to handle things differently we even have steps to stop another recession from happening. Unemployment isn’t really an issue right now the economy and employment both seem good but it is something we should be aware of and we should also be thinking differently on how to deal with our money.
Amadeo, K. (2018). Types of Unemployment. The balance. Retrieved from https://www.thebalance.com/types-of-unemployment-3305522
Barile, M. Unemployment During The Great Depression. Lovetoknow. Retrieved from https://jobs.lovetoknow.com/Unemployment_During_the_Great_Depression
Horsley, S. (2017). FACT CHECK: President Trump’s Record On Jobs And Stocks. Npr. Retrieved from https://www.npr.org/2017/12/08/569451704/fact-check-president-trumps-record-on-jobs-and-stocks