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Unemployment: America's Greatest Economic Challenge Essay

617 words - 3 pages

About five years ago, in 2008, the unemployment rate in the United States rose dramatically, jumping from 5.0% in January to 7.3% in December. The numbers kept climbing, topping out in October of 2009 at a whopping 10%, the highest unemployment rate this country has faced since 1983. Although each country encounters economic challeges like unemployment, inflation, and poverty, unemployment is the worst of them. It's not only detrimental to the individuals without a job, but also their families, which spreads to the nation as a whole.
To understand why unemployment is so destructive, first, one needs to know what it is. Unemployment occurs when someone doesn't have a job, but is actively looking for one. While a person is without a job through no fault of their own, and if they're eligible, the state government will provide them with unemployment insurance for a certain amount of time while they are searching for a job, which helps that person to provide for themselves and their family. It's during recessions that unemployment rises, and during those times divorce and suicide rates also go up. Unemployment isn't tangible, but it's results are definitely visible.
There are many different factors that contribute to the percentage of jobless people to rise. One of them is an increase in population. From 2007 to 2009, the time right before and right after President Obama was elected into office, a significant amount of troops came home from the war, as promised, causing the population of people looking for work to escalate. Because there weren't enough jobs to hire everyone, the unemployment rate went up. Outsourcing of jobs is another big one. This is when a company wants to make more money so they transfer to another company whose minimum wage is lower than that of America's, so they can pay the laborers that they hire to work...

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