Topics: Unemployment, Economics, Inflation Pages: 5 (1963 words) Published: February 11, 2011
Unemployment affects people differently. Some face financial stress, even to the point of losing their homes. Others can be so depressed that they become emotionally and socially unstable, even to the point of committing crimes. These effects of unemployment have many causes. The main reasons for unemployment are improvement of technology, recession, and globalization.

Unemployment has been increasing over the past ten years. It has more than doubled since January of 2000. According to the Bureau of Labor Statistics, the recent report of the employment situation in October of 2010 shows that the unemployment rate is the same since May, at 9.6%. However, the rate is disproportionate among the major worker groups. The unemployment rate for adult men is 9.7%, adult women is 8.7%, teenagers is 27.1%, whites is 8.8%, blacks is 15.7%, Hispanics is 12.6%, and Asians is 7.1%. About 6.2 million people are unemployed long-term, and 41.8% of the unemployed have been unemployed for 27 weeks or longer (United States. Dept. of Labor). Therefore, the unemployment situation leads to the difficulties that affect people's daily lives. Having no job affects people emotionally, financially, and socially. Emotionally, they are worried about the survival of themselves and their families. That causes a lot of stress for people. Some people lose their homes and their insurance. Some are even forced to take any job that comes along, which may not be able to meet all of the financial needs. For example, it might be hard to pay the bills, the house payment, food, gas, etc. Some people are not able to work because there is a flood of available employees in that job due to businesses closing. People might face a lot of little personal financial stresses in addition to the big ones. Worry, depression, sadness, even anger, is all felt by unemployed folks. Financially, unemployment benefits help a bit, but they run out eventually. If the person cannot find a new job, he may go into debt, lose a home, and have no way out but perhaps filing bankruptcy. Socially, I would imagine it is an embarrassing situation for some people to be unemployed. They may feel as though others think it is their fault for their unemployment, but that is not necessarily true if their job was lost due to the economy. Since the unemployment rate is still high, it has different effects on people. Therefore, people and the government should find out the causes in order to reduce the unemployment rate.

The rise in the unemployment rate has many possible causes. The first possible cause is the improvement of technology. Changes in technology have altered the workplace. For example, automation and the use of machines and computers have replaced the need for people. So, less of a physical, human workforce is required to make a business operate than in the past. For instance, if a factory has machines to do the work on an assembly line to produce a product, the factory would need to hire fewer people for the job. Computers and tools like the internet also can affect unemployment. Likewise, an ATM machine can replace a bank teller, and online teachers can take many more students at once than in a traditional classroom. Everyone is getting their news on the internet, so putting a paper together does not need many workers anymore. The second possible cause for the rise in the unemployment rate is the recession. During these years, we have seen a lot of negative economic problems. The stock markets began crashing. Major industries, such as the banking industries and auto industries, needed the government to help them out financially and bail them out of debt. Companies started going under, began downsizing, or even going out of business completely, like the Circuit City stores. Besides that, there is also a collapse in the housing markets. There are tons of foreclosures on homes because people could not pay their mortgages and lost their homes. If businesses are collapsing or...
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