Unemployment is a troubling problem that affects every area of the economic sector. In times of economic turmoil, unemployment rates typically increase for workers from all industries, influenced by a number of economic indicators, including consumer confidence, inflation, government spending, and economic growth.
As economic conditions decline, businesses of all types are affected, and as a result, they must cut costs, often in the form of job cuts. Unemployment results in a number of economic and emotional consequences for those affected. The following discussion will distinguish between two types of unemployment and its various causes as well as the influence of the events of September 11 and afterward that have resulted in higher rates of unemployment across the United States.
Causes of Unemployment
In the fourth quarter of 2002, unemployment rates soared to 6%, the highest jobless rate since 1995 (Cooper 25). Despite promising indicators that an improvement will be seen in the 2003 labor market, very little optimism has been observed. The 2001 recession resulted in dramatic decreases in profitability and productivity in most industries. Consequently, many jobs were eliminated and workers were left to seek other sources of income. It is important to note that both skilled and educated workers are vulnerable to unemployment in the current economic downturns. Unfortunately, skilled workers in manufacturing and other similar industries as well as educated workers in financial and comparable sectors have...
Furthermore, the number of educated workers in the U.S. is on the rise, and in order to prevent a dramatic increase in unemployment rates for these workers, the economy must create a large number of higher-level jobs to satisfy the demand (Mandel 37). Although productivity is expected to increase in 2003, the change will not be dramatic enough to significantly impact unemployment rates. Therefore, workers are expected to continue to suffer the consequences of economic turbulence.
The September 11 Factor in Unemployment
After the tragic events of September 11, 2001, the U.S. economy headed into a tailspin from which recovery has not been fully realized. Intense fear and trepidation by most Americans resulted in reduced spending and consumer confidence in U.S. markets. As a result, industries in many sectors felt the wave of uncertainty and began to lose profits. Furthermore, economic growth was halted as the U.S. coped with intense feelings of loss and fear. As government spending in the areas of homeland security and the military increased, capital expansions for education, healthcare, and economic stimulus packages were limited. Many U.S. residents felt the dramatic wave of economic uproar directly in their paychecks. Many residents argue that the Bush administration has not fulfilled…
