Unemployment Crisis

Topics: Unemployment, Economics, Great Depression Pages: 3 (1004 words) Published: March 10, 2013
Unemployment crisis: The demand for goods and services is needed to achieve the growth that will boost the economy and provide jobs.

Unemployment is the number #1 issue facing the U.S. Economy. It is imperative that the government intervene to help reduce today’s staggering rate of unemployment. We will take a look at unemployment defined, the different types of unemployment and their causes. Throughout our analysis, it is crucial to reflect on historical trends and policies. Unfortunately, there is not a quick fix to the current unemployment crisis. It is a multi-faceted issue that the government needs to sort through and develop a comprehensive strategy appeals to both political parties. According to the United States Department of Labor, Bureau of Labor Statistics, a person is classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Actively looking for work may consist of any of the following activities: * Contacting

* An employer directly or having a job interview.
* A public or private employment agency.
* Friends or relatives.
* A school or university employment center.
* Sending out resumes or filling out applications
* Placing or answering advertisements
* Checking union or professional registers
* Some other means of active job search.
When looking at the overall macroeconomy, several types of unemployment have been identified, including: frictional, seasonal, cyclical and structural. The last three of these types mentioned are considered “natural” byproducts in an economy where upward mobility is allowed, and expected to be part of the labor force even in boom. The presence of these types of unemployment also reflects labor markets responding to dynamic industries that change the composition of their output based on signals from the economic activity. [1]

The first type of unemployment is frictional unemployment,...
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