This accounted for about 14. 6 million unemployed Americans. The black teens were leading with unemployment of 39. 9% Asians had the lowest unemployment rate of 7. 7%. The total number of officially unemployed and the hidden unemployment (29. 1 million) account for 18. 2% of the labor force. The graph below illustrates the levels of unemployment in US between 1999 and 2009. The rise in unemployment in the month of June was partly attributed to mass layoffs of about 1,647 which involved 145,538 employees.
According to the Wall Street Journal, seven million Americans have been seeking jobs for more than twenty seven weeks and about 4.7 million have been out of employment for more than a year. The layoffs have taken an upward trend since 1995 as shown in the graph below. Even though there has been a slow down in the number of layoffs, hiring of new employees by companies has not picked up. Research by economists shows that the labor market is still very low and that any job opening is receiving numerous applications. The following table shows unemployment for the period between January 2008 to June 2010. Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010
From the table the rate of unemployment dropped slightly in the month of June in 2009 (US Bureau of Labour Statistics, 2010). In spite this; the growth in hiring from private sector was lower than what was expected by President Barack Obamas administration which had prioritized job creation. In addition the drop was attributed to more people giving up looking for jobs rather than increased job creation. Job creation in US The job creation in US was highest in the month of April 2010 in a period of four years. About 290,000 jobs were created in 2010.
In addition payrolls rise was experienced for the first months of 2010. Private sector was seen to spur this rise in payrolls through creation of about 231,000 jobs in the month of April 2010. In spite this; the number of unemployment hit a high of 9. 9 percent. The number of job openings in May 2010 was below those that existed prior to recession even though there having been gains since July 2009 (Trading Economics, 2010). The economy has been creating very few jobs although it has been touted by analysts for months to be recovering. The graph below shows the number of jobs created by private sector between December 2007 and May 2010.
In May 2010, only 20,000 jobs were created excluding those generated by the census. The non-census jobs average growth rate between February and May 2010 has been 130,000 jobs per month. This is reported to be slightly faster than the workforce growth. Prior to recession, economy was been driven by housing bubble (US Bureau of Labour Statistics, 2010). The bubble used to generate about $500 billion in annual demand which stimulated construction. The destruction of this wealth consumption has been curtailed by lack of money among consumers (US Department of Labour, 2010).
The demand in the economy is currently being sustained by wages from census jobs which employ about 500,000 workers. The deficit cultists are predicted to continue causing high unemployment in the coming months. Thus people are expected to be laid off because of deficit cultists and not that they lack the required skills or unwilling to work. It is also argued that many people are unemployed because of the lack of skills among those who manage the economy (Trading Economics, 2010). The fact that the incompetent managers of the economy are being well paid shows that the economic policy in place is not good (CIA, 2010). Conclusion
From statistics the rate of unemployment has been rising since the onset of recession in December 2007. In spite this the month of June 2007 saw a drop in unemployment from 9. 7% to 9. 5 percent. This was partly attributed to many people giving up looking for jobs. In addition few jobs were created by privet sector. The increasing rates of unemployment were highly due to decline in real estate industry which used to create wealth amounting to $500 billion in a year prior to the onset of recession. Job creation by private sector in April 2010 helped to raise the payrolls o workers and reduce the unemployment in May from 9. 9 to 9. 7.
There is much needed to reduce the high rates of unemployment US. Suggested areas of further research There is need for much research to address the issue of unemployment since the prioritization of job creation has not helped much to address the problem of unemployment in US. In addition, much research needs to be carried out on the role of private sector in addressing unemployment in US.
References US Bureau of Labour Statistics. 2010. Home. Available at: http://www. bls. gov/ [Accessed on 27 July 2010] http://www.dol.gov/