This article is about how the Long-tem Unemployment in the US is getting worse. This could be seen as a warning flag for many future The US spends a much lesser proportion of their GDP on labor polices like training programs compared to many other countries; This can may become a big problem for the US because the more a person is remained unemployed, the harder it will become for him to get employed. As more people become unemployed for a lengthier period of time, poverty too may inevitably rise, and an income-gap may widen. Those on the lower end of the spectrum may not then be able to give their children an good education because of low income and that may lead to loss of skill and potential future growth.
I think the US should focus on developing policies to help solve these problems of the growth in long term unemployment lest it becomes something too huge too handle....
The long-term unemployed people, as talked in the textbook, tend to be more easily get discounraged and may not going to try to find a job any more. Finally these people may become discouraging and being out of labor force. This will cause not only economic problem but also even more social problems: higher criminal rate; huge gap between rich and poor; lower rate of higer education, etc. This could even influence the whole generation.
ReplyDeleteIn order to relieve this serious unemployment situation, US government should take action focusing on both frictional unemployment and structural employment.
Unemployment has always been a big problem even though how hard the government tried to reduce the rate. They still can't really handle the situation well. US government need to come up with a solid plan to reduce the unemployment rate since this is affecting the country economically, socially, and politically
ReplyDeleteThis whole idea of contributing more funding to policies such as training programs is something that needs to be looked into. However, though I am not completely certain training programs tend to be more technical or hands on skills and this is a part of the economy that is suffering greatly from job cuts and migration of companies which hire them. First we must look at ways to bring back these businesses and gradually develop training programs.
ReplyDeleteI find it especially interesting that Barack Obama's move of banning the practice of discrimination in the hiring queue could actually lead employers to stop hiring! This is evidently an unforeseen consequence of a well-intentioned move. It is also interesting to note that extending benefits under the proposed American Jobs Act would counter poverty caused by long term unemployment, but what about the criticism that these benefits give an incentive for people to not look for work?
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