Essay - Unemployment Outline Introduction Causes of Unemployment A) the Four Components...

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***** of Unemployment a) The four components (Cyclical, Structural, frictional and seasonal *****) b) Increased productivity c) Globalization, Outsour*****ing

Unemployment Statistics a) National Unemployment Rates b) State wise Comparison

4) Effects of Unemployment

Okun's Law (Relation between GDP and *****)

***** and ***** Debt

*****) Unemployment Benefits

Unemployment Insurance

Extended benefits (TEUC)

***** Adjustment Assistance (TAA)

***** Reemployment Accounts (PRA)

*****) Personal Effects of Unemployment

Financial Strain

Psychological effects

Effects on family

*****) Conclusion


*****sis high rate of unemployment has a negative effect on the nati*****al economy and greatly affects the living standards of the people. Apart from the loss of productivity and the consequent economic downslide, unemployment also ***** ***** psychological implications and damaging effects on the family structure.


Unemployment is one of ***** major ***** problems affecting a nation. The United *****s, ***** of the vibrant economies in ***** world currently suffers from a huge ***** crisis with more than 8 million ***** in the civilian workforce without jobs. After a dec*****de of continued ***** consistent growth (1990 to 2000), which saw a growing GDP and a booming economy, *****re started a period of recession. Unemployment rates reached a recent high of 6.1% in June 2003. The ***** of productivity ********** the extended unemployment ***** have created additional strain on the already deficient federal budget, ***** in turn has resulted ***** *****er burden for ***** tax paying citizens. Let us analyze the underlying causes for unemployment, the unemployment support and provisions *****fered by ***** government and the ***** of unemployment on ***** individual as well as the nati*****al economy as a whole.

Causes of Unemployment

There are several causes ***** unemployment situation in any market driven *****. Accord*****g to economists Friedman and Phelps, any nation at any given point of time, would continue to have a certain "natural rate" of *****. As per *****ir hypothesis, an increase in total demand does not just result in a decrease ***** unemployment ***** but also creates an ***** in inflation. Likewise a decrease in total demand will result in an increase in unemployment rate *****d decreasing *****. There always exists a periodic oscillation in aggregate ***** and hence a consequent flux ***** unemployment *****, which is referred to as cyclical unemployment. [Paul Krugman].

***** have studied that an increase in productivity and an increase in the labor force will both worsen the unemployment situation. As economist Heilbroner observes, "On the domestic front, they include a technology of rampant au*****mation that has created severe employment strains in all advanced countries..The ***** is prospective *****creasing dependency on government-financed programs of un***** relief or public works." [Heilbroner, 120]. Further***** unemployment ***** can be worsened by government policies such as price control, monopoly privilege to companies ***** even extensive government spending. [Judd W. Patton] The emerging Globalization phenomenon also has a significant effect on our national economy. Employer initiated layoffs ***** observed to be on the rise over ***** last decade. Outsourcing of ***** to other developing countries is one


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