The Bureau of Labor Statistics (BLS) of the U.S. Department of Labor, states unemployment has fluctuated from 2004 to 2014. BLS announces on the first Friday of each month the total of employed and unemployed individuals for the previous month. According to Dickinson (2014), unemployment has dropped almost two percent, from 7.8 percent to 5.8 percent since President Obama’s reelection (para. 2).
As the economy stabilizes from the worst financial crisis since the great depression, individuals continue to search for jobs with no avail. Job loss hinders the household, business, and government economy. When individuals lose their jobs, they no longer have the resources to pay utilities, their willingness, and self-esteem suffers a blow. Thus, making it harder for citizens to get back on their feet.
Unemployment has impacted many individuals through time, but in this year alone, an overwhelming blow has made it harder to get back up. Individuals who have lost their jobs have struggled for more than 10 months searching for a job they cannot find. The financial crisis has forced many individuals to learn new skills online, and to continue their education with the hopes of attaining a full time job.
Unfortunately, even when a healthy, dynamic economy exists, a nation will undergo some levels of unemployment. Perhaps, as individuals quit their current jobs to search for a new and better job. However, the unemployment rate in recent years has to do with the recent 2013 recession. The results of this recession caused major setbacks in the economy and unfortunately massive layoffs.
The President has fought to extend unemployment insurance, thus allowing individuals to have an income while searching for jobs. The extension provides income to pay phone bills, cars, mortgages, and any other debt the unemployed may have. For example, the unemployed needs to pay his or her phone in case someone calls with a job offering. In addition, if the individual cannot afford a car payment, getting to the new job will present even more problems. Thus, the need to extend the unemployment insurance.
Economists argue against issuing an extension to the unemployed, referring to the possible lack of motivation of searching for a new job this might bring. However, individuals, in general, prefer the pride of having a job rather than an unemployment check. Unemployed individuals try to cope with the aftermath of this economic crisis.
Unemployment insurance has provided a vital lifeline for many citizens. For many others it is the only source of income they have to support their families while searching for a new job. Even though, businesses have added nearly ten million new jobs, housing has remarkably began to rebound, and auto industries have begun to boom. Even as unemployment reflects the lowest rate since 2008, unemployed citizens still struggle to find a job.
In the current economy state, the expectations fluctuate depending on what an agency or an individual anticipates. Better job opportunities will affect consumer’s expectations, thus helping them evolve from fear of price risings to optimistic future outlook. Even though, the nation has struggled to maintain a balanced economy, consumers have begun to spend money instead of saving it. Thus, moving the Aggregate Demand Rate slightly to the right. In other words, recovery has begun to take place and in the near future one expects a balanced economy.
References
Colander, D.C. (2013). Economics (9th ed.). Retrieved from The University of Phoenix eBook Collection database.
Dickinson, M. (2014). Why the Economy Couldn't Save the Democrats. Retrieved from http://www.usnews.com/opinion/blogs/opinion-blog/2014/11/07/why-the-economy-couldnt-save-democrats-in-2014-midterm-election?int=a41f09
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