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* The growing population in the country has led to the ratio or percentage of unemployed to increase. It has to be taken into notice or consideration that jobsdo not increase with the increase in population.
* Firms replaced people by machines in order to increase their production. This is known as technological unemployment.
* Most of thecompanies in the US (also to be seen in other countries as of late) encourages multitasking. This means one person does several jobs, which would have been done or carried out by a number ofadditional people otherwise. With increase in emphasis on multitasking, it has led to somewhat of an increase in the level of unemployment.
* Gov Snyder says businesses pay more taxes inthe United States than just about anywhere in the world. This means many businesses are pushed out of the country
* There are plenty of seasonal products and businesses in the US, and as theseasonal periods are over, those employed on related areas are laid off, thus leading to unemployment. This is known as Seasonal Unemployment.
Cost of unemployment
* A loss of realGDP: since fewer people are with an employment,the amount of output produced is less than the level of economy is capable producing.
* Unemployed people may have difficulties finding a work.* A loss of tax revenue for the government: since unemployed people do not have income from work they do not pay income taxes, so it decrease the tax revenue for the government.
* Costto the government of unemployment benefits: if the government pays unemployment benefits to unemployed workers, so if the number of unemployed workers increase the government would have tospend more in unemployed benefits.
Solution
The government should increase its spending in education so there would be more people capable to produce more and also to increase the production.
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