Economic Impacts Of Unemployment

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Unemployment affects millions of Americans each year. The length of time an individual is unemployed depends on several things, including age, education, experience, and resources. Equally important to consider, there are several aspects of the U.S. economy that factor into the rate of unemployment and labor force participation. Current trends in unemployment reflect a shift toward advancement in American manufacturing and technology. Although economic recovery is still in progress and some citizens have experienced some improvement, to curb unemployment, policymakers must implement training programs and focus on higher education policy to positively affect frictional and structural economic growth and to remain on pace with innovation and …show more content…
Indeed, as technological change accelerates its effects are widespread throughout the economy, ultimately putting a strain on today’s labor force. According to the Bureau of Labor Statistics, “Employment of computer and information technology occupations is projected to grow 12 percent from 2014 to 2024, faster than the average for all occupations” (BLS.gov). Job growth in these occupations is attributed to increasing demand in mobile and cloud computing in addition to an expanding demand in internet services. In this example, innovation, while optimal for both the economy and society at-large, greatly affects structural unemployment. Structural unemployment is a type of long-term unemployment that results from skill mismatches and position/job requirements (Miller p.145). Currently, the U.S. does not have a nationally accrediting system for on-the-job training. Post-school training is essential, especially to lower-income workers who may lack the resources for higher education. The fraction of employers that do offer job training, train their employees for job-specific tasks. This training fails to prepare workers for a lifetime of technology and workplace practice changes. General computer and non-industry specific skills compliment a worker’s existing …show more content…
Labor market experienced solid growth and a marked decrease in unemployment. Studies show that the positive effects of this growth sparsely benefited young workers, leaving them to continue feeling the effects of the recession. Prior to the recession, “the labor force participation rate among those aged 16-19 was 44 percent. During the recovery, the labor force participation rate for this group stabilized at 34 percent – a 10-percentage-point decline from its prior level” (Buckley, 2015) Other age groups experienced declines, however the youngest in the labor force were the greatest affected in terms of unemployment. Although several workers turned to government assistance until finding appropriate jobs, one of the most positive outcomes of the recession was the increase in young workers pursuing higher-education. In fact, from 2012-2013, “the percent of high school students that graduated reached an all-time high of 81 percent, likewise the proportion of 18-24-year-olds enrolled in a postsecondary institution increased from 38.8 percent to 41 percent” (Buckley, 2015). An increased investment in education will likely benefit young generations and the U.S. economy. Higher skilled and well-educated workers will allow business to fill positions more efficiently and increase

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