Are you among the many Americans that are lost their means of livelihood in the past months? Are you jobless and have been looking for employment for at least four weeks now? Have you wondered why many more Americans may loose their job in the future? This article exposes the major causes of unemployment in the United state of American
A Recent report by the Bureau of labor statistics indicates that 4.1% of Americans are unable to find jobs or unemployed
Unemployment is defined as a situation when an employed person is laid off, fired or quits his work and is still looking for a job or being unemployed is defined as those who do not have a job, have actively looked for work in the prior four weeks and are available to work.
This article examines the 5 common causes of unemployment in the United States and the impact of unemployment on the debt profile of such individuals.
Causes of unemployment in the United States can be attributed to so many factors, 5 of which shall be examined in this write up”
- VOLUNTARY UNEMPLOYMENT
In the United States of America quite a number of people decide on their own volition to work out on their employment or disengage from their employment or temporarily take a break from actively being engage, some of the unemployed in this category have saved up considerable sum to afford them the luxury of staying out of job albeit temporarily in other to search until they get their preferred positions. However they soon spend up their savings and continue to maintain their appetite for luxury goods. Hence, piling up credit card debts
Another major cause of unemployment in the US involve a situation in which either the company or the individual including family members relocate to a new location which necessitated their being out of work until they are gainfully engage in the new location. An average active America is constantly on the move seeking new vistas of opportunity wherever such opportunity exists. Of course during such relocations expenses pileup and they soon discover the seemingly inexhaustible vault is being depleted rapidly.
- ADVANCES IN TECHNOLOGY
Another major cause of unemployment in the US is due to advances in the technology (structural unemployment) this occurs machines or robots replaces human in carrying out economic activities. Artificial intelligence machine learning and advances in robotic science are identified courses in this category. The implication is that human beings who have lost out will subsequently need further training in other to adjust to these technologies. Pending the time it takes to get another job, there expenditure keeps rising without a corresponding increment in income generating activity thus accumulating debt i.e. credit card debts, real estate debt, insurance etc.
- NEW ENTRANT INTO THE LABOR MARKET
Every year an average of 4.5 million students graduate from college according to the National Center for educational statistics. Although not all of them will be new entrance into the labor market but substantial amount of this college graduate will enter the labor market, thereby saturating the market and leaving quite a number unemployed. Some of this graduate already has baggage’s in relation to their debt profile, leaving them unemployed will further compound their debt status.
- JOB OUTSOURCING
Although job outsourcing is on the downward trend in the US thanks to the new administration. However, quite a considerable amount of jobs are still being outsourced to Asian, South America and other regions due to competitive nature of such jobs. Countries with lowered labor cost attract manufacturing plant to be sighted in such countries which means cheaper labor force for the industrialist. Other reason for relocating manufacturing plant can also include Government policy and nearness to raw material sources.
In summary whether unemployment in the US is caused by voluntary decision or by company/individual relocation or by advances in technology or by new entrant into the labor market or by job outsourcing, unemployment has a massive impact on the debt profile of individuals and consulting a financial planning consultant for advice will militate against it impacts.