Is Unemployment a Social Problem?

Unemployment: A Social Problem?

There are few problems that nations face more perplexing than that of unemployment. The condition of being unemployed is in some ways natural to a capitalist system, as businesses try to succeed while spending as few resources as possible, and a flexible workforce means most people are willing and happy to change jobs several times throughout their lives. The problems of unemployment then often only go noticed during periods of economic slowdown, when the number of out of work individuals rises far beyond the ability of private business to give these individuals jobs. Unemployment is a significant social problem caused by poor economic conditions, and as such, unemployment should not simply be characterized as an individual's inability to find meaningful work, but also a nation's inability to provide meaningful employment to the entirety of its workforce.

A highly developed economy requires a busy and proactive society to fuel it. The perceptions of individuals, as well as the overall unemployment figures of the society, has a correlating link with the impression of the healthiness of a nation's economy. (Paul & Moser, 2009) Gone are the days when government provided security nets have protected the less fortunate for an indefinite period of time. A 'normal' unemployment rate in the United States is about 5%, and that level has been fairly consistent for more than 50 years. Only during recessions has that number increased, and this past recession caused unemployment at some times to reach over 10%, doubling the amount of unemployment workers. The entire economy suffers as a result, because with so many individuals receiving less money from their former employers, goods and services have been reduced or eliminated in these worker's annual budgets. ("The effects of," 2011) A ripple effect courses through the entire economy as less money is being spent and former luxuries are cut off.

The manufacturing sector has been hit particularly hard as a result of the latest worldwide recession, and many of the millions of jobs lost simply will not return due to higher efficiency robots as well as outsourced labor to foreign markets. (Riley, 2006) Workers who have spent their entire lives in the manufacturing sector must now somehow change careers amidst a weak economy, and therefore society's confidence in it is weakened. The perpetrators of globalization and the onset of outsourcing have been targets of much wrath by the hands of blue-collar workers. Families and school districts suffer when manufacturing plants close, and entire regions of the United States, particularly the heavily industrialized Midwest, have changed shape due to the change in demand for workers in these states.

Governments are meant to control markets and stabilize the nation's economy. This is one of the chief duties of central governments everywhere, but the problem of unemployment is far too complex to be handled entirely in this manner. The President of the United States cannot force companies to hire the unemployed, as the financial integrity of the corporation is paramount to the recovery of the nation's economy. Therefore the only options available to ease the pain of unemployment are the reduction of payroll and other business taxes, which may or may not incentivize the hiring of new employees, and the other option is expanding the length and depth of unemployment benefits offered to those who are in greatest need. Both of these options require the central government to spend more money, as tax breaks and benefit expansion are both very costly programs. The President must decide what his most important priority is at any given time, but the problem of unemployment is an inescapable ailment, which must be addressed with every tool possible, even if those tools are not directly employing those who are actively seeking jobs.

People respond loudly when unemployment is seen as a continuing and painful condition in a society. Protests, social unrest, and even suicides are the result of long-term unemployment that drags a nation's pride down. Politicians are extremely perceptive to the problem of unemployment, as they are popularly elected and unemployment reaches so deep into the entire country that nearly everybody is personally affected. Consistently, the most important factor to the American electorate has been the condition of the economy, and a weak economy is a no-win situation for most political actors.