Unemployment is a major problem of society. In America, the unemployment rate is at 3.5% as of September 2019, according to the Bureau of Labor Statistics. The two nations with the lowest unemployment rates are Cambodia and Thailand. These two nations have unemployment rates below 1%. In order to understand and resolve this issue, we need to understand the factors which causes the decrease in the number of jobs available.

Unemployment is caused by slow economic growth and because of industrial reorganization. There are three main types of unemployment. They are called Cyclical Unemployment, Structural Unemployment and Frictional Unemployment. Cyclical unemployment is a type of unemployment that occurs when a company cannot support full employment due to less demand for goods and services. Cyclical Unemployment usually occurs due to slow economic growth. Structural Unemployment is a type of unemployment resulting from industrial reorganization or downsizing, typically due to technological change, rather than fluctuations in supply or demand. Frictional Unemployment is when a worker quits their job or is terminated from their job.

People who are unemployed are currently jobless and do not have a stable source of income. Being unemployed also means that you are currently available for work and have been looking for work for at least 4 weeks. Long-term unemployment could cause workers to lose their skills because of loss of practice. Also, being unemployed can lead to depression, anxiety, low self-esteem and self-confidence. Economically, unemployment means no income, which increases poverty. No income also leads to an increased crime rate as well because if there is no source of income then one could turn to stealing or other illegal activities when desperate. The families of the people who are unemployed are also affected.

Unemployment puts the economy in a spiral downturn. There are many initiatives to reduce and eventually abolish unemployment. From the government to private sector, many efforts have been taken to reduce the unemployment rate. There are ways that we can also help to reduce the unemployment rate. As individuals, we could try to learn regularly and keep our skills updated to the current trends and market needs, Rather than waiting for a job, we could be entrepreneurial and start our own business. Small businesses are the major source for employment. According to the Small Business Office of Advocacy, small businesses comprise 99% of all business in the USA and employs more than 53% of the workforce

As a community we should encourage entrepreneurship and invest more into creating more funds and work-spaces. We should also equally invest in education for any age group and make it accessible for anyone to continue learning and update their skills. As Richard Barnson said, “Take care of your employees and they will take care of your business. It’s as simple as that,” businesses should invest in their own people and offer them the training needed instead of replacing with another skilled worker. Companies who invest in their people create loyal employees, who are also usually loyal customers.

About The Author:

Kushal Golechha is a 10th grader who goes to Gunderson High School is San Jose. He enjoys playing sports like basketball, running, football and badminton. He also likes to learn about computers and cybersecurity. He teaches martial arts at KO Kung Fu.