Unemployment and the Great Recession Essay - 1516 Words

The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments. However, this move is not always a wise one because when an enterprise has fewer workers it would reduce its productivity which would mean more†¦show more content†¦In 2011, the rate of unemployment is at 9%. Although there is a decline it has been rather slow. Financial analysts predict that unemployment rate would drop to 8%. Even for the people who still have their jobs the hours that they work have been reduced since then. With reduced hours the productivity of the workers would not be fully exploited which in the end, affects the economy. This is so because with a small fiscal base the economy has not been able to recover from recession fast enough. Although there have been positive growths in the employment rates these growths are barely enough. They do little to help in the dire situation. This only means that joblessness is something that the population would have learned to live with. The minority communities like Africans have tasted the worst impacts of recession. This is so because unemployment rates are highest within these communities. By the year 2010, the unemployment rate of the African population in the United States stood t 16.1%. These groups have been hit most because the level of education among the majority of them is low, compared to that of the dominant population. Language barriers can also, be considered a cause. As a result of, the growing unemployment, these groups have turned to crime. For instance, the black population is branded as violent. It is true thatShow MoreRelatedA General Slowdown In Economic Activity, A Downturn In1664 Words   |  7 Pagesare characteristics of a recession. A recession has a domino effect, where increased unemployment leads to less growth and a drop in consumer spending, directly affecting businesses, which lay off workers due to losses. A recession occurs when there are continuous (two or more) quarters of negat ive gross domestic product growth (GDP). In plain english this means, that economic growth slows down during a recession. Data showing an economy experiencing a period of recession include a fall in revenuesRead MoreThe Beginning Of The Great Recession1392 Words   |  6 Pagesa. 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FREDERIC BOUCHET MARCH 25, 2016 INTRODUCTION According to Investopedia, â€Å"a recession is a significant decline in activity across the economy, lasting longer than a few months.† Technically a recession is viewed and measured by evaluating and verifying negative growth in a nations’ Gross Domestic Product (GDP) for two successive quarters. A recession can be seen when there is a decline