Determining Causes and Effects of Unemployment
August 10, 2015Determining Causes and Effects of Unemployment
A steady source of income is essential for fulfilling the needs of an individual or a whole family. A steady source of income is labeled as having a job, Social Security benefits, and/or retirement benefits. In most cases you will not be able to receive social security benefits until you turn a certain age, therefore you will need to have a job to have steady income. Once that steady income has stopped the trouble starts brewing about where the income will come from to get certain things done. The effects of unemployment adversely hit everyone. Unemployment is like an infection that spreads throughout a city by making the individual despondent, causing problems with the family, and bringing chaos to the community.
Even though the unemployment rates have dropped, there are millions who are out of work. The major cause for unemployment is fewer new openings. “Post-Crisis, the number of new job openings in the country crashes to below three million jobs whereas there used to be 4.5 million new openings before it.” (Top Five Reasons, 2011) The second leading cause is a lack of real growth. “The economy is gripped by a chronic lack of real growth. A measly 36,000 jobs were added whereas economists have concluded that at least 150,000 new jobs are needed to keep up with the rise in population.” (Top Five reason, 2011) These are the most important causes but being laid off because the company has to downsize or move should be the number one factor. Another reason should be a lack of advancement. With the lack of advancement people choose to leave their jobs to find something that pays more and easier for them to advance. Some make these choices without considering if they will find a job right away and there hence them to be unemployed.
An individual can become…