Long-term unemployment occurs when a person is out of a job for 27 weeks or longer. To be listed as such by the Bureau of Labor Statistics, one must have successfully found jobs in the preceding four weeks. 1 (Kimberly Amedeo) After six months of looking for jobs and coming up empty-handed, the majority of the labor force becomes discouraged. The following article attempts to explain long-term unemployment, whose responsibility it is to generate jobs, as well as to examine the laws that regulate unemployment in the United States. Long-term unemployment may result from either cyclical or systemic unemployment. Cyclical unemployment is usually caused by a recession. A recession is a period where there is a decline in the economy and trade for at least six months characterized by a fall in the GDP.
On the other hand, Structural unemployment occurs when a workers skills and abilities are no longer equivalent to the need in the labor market. Unionization may also lead to unemployment. They opt to champion for workers right by forcing companies to increase workers’ wages.This may eventually make companies to lay off some workers in order to maintain their profits and their budgets. Over time these workers may not be able to secure other jobs leading to either structural or cyclical unemployment. Research shows that there has been a steady rise in unemployment hitting over half a million every year.
In a study by John Waltiwanger shows that small businesses created most of the job in the USA despite them being smaller in sizes. These businesses usually ‘die’ within 5 years rendering a majority of the workers jobless. According to a research by John McLaren of UVA and Gihoon Hong of Indiana they stated that while in some models an influx of immigrant workers will always lower wages for those in tradable professions, it also can cause the wages for those in non-tradable professions to see a wage increase, as demand for everyday goods and services grow with the expanding population. (Gillian B. White). The government should also take an initiative of creating jobs to its citizens.
President Obama in his 8 years tenure created more jobs estimated to be around 14 million. He did this by empowering the private sector thus creating more jobs in that sector. Since most of the jobs are created by the small business an initiative should be taken to help grow these businesses. Loans should be made easily accessible to those who might be willing to start up this small-scale business and their interests lowered too. Workers in the state benefit with an unemployment insurance plan which carters for those employees who become unemployed not by their own fault.
The payment is given to them up until they secure other jobs or up to given time frame stipulated in the agreement. The payment is set to sustain the worker during the hardest time of looking for another job. These payments are justified as they carter for the worker expenses as they adjust to the economic changes. Without this payment, the worker may be desperate to an extent of looking for jobs which he or she is overqualified to do it. The unemployment insurance is guarded by the federal Social Security Act which was enacted in 1935. The program is administered through the Federal Unemployment Tax Act, which is applicable to states that adhere to the United States laws. Workers are levied a small amount to support the unemployment compensation system. The rail industry also has a separate unemployment compensation to its workers who might lose their jobs. Corporatizes and the federal government as much as they play a role in creating jobs, they should not be tasked with job creation. In my opinion, I urge the government to invest in this small business as they provide more jobs. The private sector should also be prioritized during job creation.
The following are some of the factors that predispose individuals to unemployment and how they can be dealt with; technological improvements have led to the reduction of the labor force in the majority of the industries as the work to be done by humans has been given to machine and robots. This can be addressed by finding alternative jobs which humans can be given after their jobs have been automated to machines. Unionization is also a factor considering that since companies are forced to increase their wages, companies are forced to let off some workers rendering some jobless. The unions championing for the increase of workers’ wages should champion for deals which don’t scare companies to an extent of releasing some workers.
The immigration policies also is a factor as it may regulate the number of workers entering and leaving the country. Laws should be implemented to regulate this cheap labor from overseas protecting the already existing workforce. Demography shift also may render an individual unemployed as some companies seek a youthful and energetic source of labor thus retrenching the old ones. Antisocial individuals are likely to behave in a way that can make them get sacked. This tendency is aggravated by periods of heavy drinking and periods of incarceration. (Sampson &laub chapter 10). People who work in the building industry lack job securities thus rendering them vulnerable to unemployment. These employers should get legal advice on job security and how to keep their jobs safe.
Long-term Unemployment, https://www.weforum.org/agenda/2016/09/extreme-long-term-unemployment-in-the-us-is-at-unprecendented-levels-it-could-pose-a-risk-to-future-growth
Laurence, Helen; William Miller (2000). Academic research on the Internet: options for scholars and libraries. Routledge. p. 160 “Unemployment Rate”. Bureau of Labor Statistics. Retrieved 2017-11-26
Stefanou, Constantin; Helen Xanthaki (2008). Drafting legislation: a modern approach. Ashgate Publishing. Pg.272.