There are several factors that have contributed to job loss; the recession, overseas job relocation, and corporate greed. The unemployment rate, which is little over 10%, is the highest that it has ever been since the Great Depression. It is imperative that some type of action be taken to get Americans working again.
As a result of the recession the American economy has slowed down to a snail’s pace. During this time, people are not too loose with their spending but become highly frugal instead. When companies’ financial performance is unsatisfactory, they are certain to reduce their workforce (source). Many companies have unfortunately relocated their operations overseas; lots of jobs have been eliminated as a result of this. Sending jobs overseas has become a common practice for companies because they can pay workers lower wages while lowering operational costs.
Corporate greed has been a major culprit in terms of unemployment. Many jobs have been eliminated because of bad financial decisions. Companies do not need any type of assistance from the government to create jobs. We have already seen how stimulus funds given to companies in the past for restructuring were misused. Creating new jobs will help reduce the unemployment rate. This past November it was reported that unemployment had decreased. That report was very misleading because most of the new jobs are seasonal. These jobs are temporary, many of which will be eliminated after the first of the year. It really is rather premature to say that they are contributing to a decrease in the unemployment rate. If the unemployment rate was truly decreasing we would not see such an increase in unemployment claims.
Unemployment in America has gotten out of hand. America has seen a major increase in job losses. This problem must be addressed with the highest sense of urgency. Unemployment is higher than it has ever been before. In order for us to be able to reduce the unemployment rate there must be newly created jobs. Until the amount of newly created jobs is greater than the amount of jobs lost we will continue to have major problems with the unemployment rate in America.