Unemployment in US

by Milan Varnado, June 2014

1500 words

5 pages

essay

The problems of unemployment in the United States of America are going to be considered in this paper. First of all, we would like to provide some explanation of unemployment. In our opinion, one of the most appropriate definitions of the term unemployment is the following. “Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force” (Unemployment Definition).Unemployed persons according to ILO classification are persons registered by the Employment Bureau, who are actively seeking work. Temporarily laid off and those who intend to start work within 30 days and they are considered unemployed if they do not fulfill the second requirement of actively seeking work.In the process of classification of the economically active population, attributing it to a particular group the most difficult is to define a clear distinction between the unemployed and the unactive. Extreme cases distinguish easily. Some people do everything just to find a job, while others work hard to make, but even among those who are actively seeking work, there are those who reject the proposals submitted to them, hoping to find something better. People who say they can not find work, they mean that they can not find jobs where they would like to work. Those who say they do not work, they mean that they do not work on any of the works that can be found. In some cases, the difference between these two situations is simply invisible.Western economic schools have different views on the nature and causes of unemployment. Unemployment first appeared in Britain in the early nineteenth century. However, by the end of the century it had widespread, growing only during economic crises. The first attempt to explain the nature of unemployment did British economist T.Maltus. He explained his by too rapid population growth that outstrips increase livelihood. The cause of this phenomenon he saw in the eternal biological law, characteristic of all living beings - multiply faster than the number of livelihood. This theory with some modifications exists today. In the mid 50's there was a technological theory of unemployment, according to which its reason is technological progress, technical changes in production, especially sudden. Fight against unemployment according to its authors should be due to the limitations of technological progress, its slowdown.The most common nowadays is the Keynesian theory of unemployment. According to what its cause is insufficient aggregate demand for goods. State, increasing revenues or reducing taxes can increase public demand in the economy that will lead to increased demand for labor, and this in turn will lower the unemployment rate.Another concept of unemployment (classical approach) is not seeing unemployment as a serious economic problems. The reason for it is too high wages, and in a free market this situation can not …

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