The Role of Unemployment in Today’s Economy
Unemployment plays a very large role in the economy today. Over 13% of the United States is unemployed. However there are different types of unemployment, such as: seasonal unemployment, structural unemployment, cyclical unemployment, and frictional unemployment Unemployment is simply defined as being without a job or the situation where the individual is willing to work a job, even though there is none available. This paper will contain briefings about the matter of unemployment and how it affects our economy as a whole. Economics is briefly defined as the science of how and why people, governments, and businesses make the choices that they do. Under the topic of unemployment, there are three main topics that help explain this term. How it affects our economy, how it can affect individuals as a whole, and what is the opportunity cost, for or not including the labor force.
First off, economics is a very important study when it comes to our nation. If our economy is doing well, we will have more jobs, and we might be in the better part of a business cycle. If our economy as a whole is doing badly, there will be fewer jobs for the people, and most likely means that we are going through a bad time of the business cycle. Unemployment is also a huge factor when it comes to our economy. Not only does it affect our nation as a whole, but it also affects the individuals who are not employed. Unemployment causes multiple negative results. With fewer people working, there will be less goods being produced. Not only goods, but production in other resources will diminish. Without these productions and goods, there are likely to be more taxes on the people due to the fewer incoming goods.
With Unemployment also comes wealth drainage; as defined by an article by Buzzle: “When you are unemployed, the government provides monetary assistance which is partly untaxed. A high unemployment rate means it has to shell out more money from the budget to support a large number of unemployed people, creating heavy burden on the budget and cut-backs in other areas.” Secondly, Unemployment can hurt us as individuals. Individuals who are unemployed may find themselves in positions that they need not be in. for example, any unemployed individuals end up taking out loans, and getting into debt. When you get into debt it becomes obvious that they are going to have a very tough time paying something off, with no money. Seeing as how this is meant to be the working age, unemployment cannot really hurt people who depend on their yearly income. With no income, comes possible debt and other financial issues. Even though there are lay-offs and other reasons that there is so much unemployment, there are also different types of unemployment, which do not necessarily mean that the individual is going to be out of a job for a while.
For example: you have seasonal unemployment, which is when the job is out of season and will not start back up until the appropriate time. Then there is structural unemployment, where the individual cannot find a job due to their skill set. There is also cyclical unemployment, which covers basic lay-offs and etc. Next, is frictional unemployment, which is the time between jobs, when a worker is transitioning from one job to another, or is actively looking for a job. Unemployment has very obvious and subtle effects on individuals. Not only can it affect our economic values, but it can also hurt the individual’s mentality, and health. Lastly, is the opportunity cost of Unemployment, and how the labor force is related to unemployment. There truly is no opportunity cost unless the goal was to reach a lower inflation rate.
The cost of unemployment is high and can lead to a very inefficient economy. Unemployment costs a loss of earnings to those that are unemployed, a lower GDP for the economy which is inefficient for the economy and leads to lower outputs and incomes. Unemployment is also a leading cause in terms of crime and violence. Especially in areas of high unemployment, there will be increased vandalism, theft, and other criminal activities. Also, unemployment is related to the labor force. The labor force is the portion of people who are actively searching for jobs, whereas people who are unemployed and out of the labor force, have given up looking for a job whether it be a permanent idea or temporarily. Unemployment can be reduced significantly within our nation, if we can create more jobs for the hard working people that are willing to fill the open positions. With more jobs come more ability to help our economy grow as a whole. In conclusion, while unemployment, is a big issue in our economy as an individual, or even as a nation, there are always ways of overcoming this problem.
For example, we can always attempt to create more jobs. Even though we might need to replace mechanical AI, in order to add jobs, it might be better for the economy as a whole so that everyone will be able to make money as a whole. Although, Opportunity cost is also a big problem that the people, business owners, and governments will have to deal with when deciding how to create the best jobs for people who are unemployed. To finish, unemployment has its own Biblical integration. There are many books that give verses relating to unemployment in the Bible. However each verse is not necessarily a concern for the nation but is dependent on the individual. Most of these verses say, that those who have their faith and salvation in God only need to depend on God and He will provide for our needs in our time of trouble. This time could be when we are unemployed, or when we are going from job to job. All that is important whether employed or unemployed, is that God is in control, and he will provide to all who seek His aid.