Unemployment

Final Research Paper Unemployment
Rizkallah Wakil
Miami Dade College

ENC1102
Professor Leitch
June 8, 2012
Unemployment is a word that is recently catching people attention. Unemployment, as defined by the International Labor Organization, occurs when people lose their jobs by any motive like a laid off, seasonal job or by any other cause and are actively looking for work within thepast four weeks. People, who stop looking for any jobs, students, stay-at-home parents, people in prisons or similar institutions, retired people, or people employed in jobs with unreported income, as well as discouraged workers who cannot find work are considered as unemployed. According to Suffolk News-Herald, the United States of America is facing an unemployment rate of 9.1% which is almostfourteen thousands of unemployed Americans who are looking for work in the month of September. It is measured in terms of the unemployment rate which is calculated as percent by dividing the number of unemployed individuals by all the people at that moment in the labor force.

There are two of unemployment involuntary or Frictional. Involuntary is when unemployed want to work but they do not find ajob. Frictional is when the employed is looking for another job for reason like payment, work-time, location, seasonal industries, attitude, taste, and a multitude of other factors that made this person look for another job. ("Sign In." Oxford Journals). So what is causing this major increase of unemployed in the past two years?

Every year thousands of new graduates start looking for jobs butno jobs are being created for them (Jobs Numbers 1). The growing population in the country has led to the percentage of unemployment to increase. The reason is because jobs are not created due to the increase of population. Competition outside the country is another severe reason that is causing unemployment to rise. One example is Wal-Mart who is constantly ruin small American business due toits low prices. According to the America’s Union Movement (AFL-CIO), the low cost good at Wal-Mart ultimately come at a high price: The lost of many jobs from small and big business, lower wages due to the risk of losing their job, and unsupportable U.S trade deficits. So how Wal-Mart is capable of selling their goods for less money? Wal-Mart is the single largest importer of foreign-produced goodsin the United States; its biggest partner is china. Through August 2005, the United States was running a $126 billion trade deficit with China. Thanks to that, the net export in the United States is a negative value which eventually will reduce the aggregate expenditures and the equilibrium real GDP will decrease. This will produce a recessionary expenditure gap which will lower the fullemployment.

Many economists are trying to solve this problem but at this rate the government also is taking some action. This Friday, Senate Majority Leader Harry M. Reid announced that they would take a part of Obama’s $447 billion jobs package that would provide many jobs in all the country.” The Senate is trying to break the American Jobs Act into pieces and force Senate votes on different elementsof the plan” (Hide, 2011). They are separating the act so they could spend some of the money building new road and highways; reemploy fired workers and increasing unemployment benefits.

Unemployment can affect any country in the world. In U.S. the unemployment rate was last reported at 9 percent in October of 2011. From 1948 until 2010 the United States' Unemployment Rate averaged 5.70 percentreaching an historical high of 10.80 percent in November of 1982 and a record low of 2.50 percent in May of 1953. The Labor Department affirm that the unemployment rates dropped in twenty-five states rose in fourteen and stayed the same in eleven. That's a good improvement from this month, when unemployment rose in more than half of the states.

In The following chart shows unemployment rates...