Sample Essay on Employment rates in the United States

Employment rates in the United States

The 2008 global economic crisis resulted in loss of many jobs not just in the United States of America, but all over the world. After the end of the President’s Bush’s term, President Obama took over and most Americans felt that there would be an increase in the number of jobs for Americans. Individuals felt that the Democratic Party policies that would be implemented would contribute to creation of new jobs accompanied by lower cost of living. Six years on, there is still a high number of Americans that are dissatisfied with the level of employment in the country. However, the Federal government reported that the number of jobs have risen in a consistent manner by over 200,000 new jobs. There has been a positive cyclical momentum with an average of 55,000 jobs being created every month. Unemployment rates have reduced by low figures from 5.8 % to 5.9 %. The government has taken the necessary measures to increase the level of employment in the country, and they can even support that with figures. Although the employment figures are impressive, most individuals have not experienced the difference (Ip 1).

The cost of living is still high and getting more than two jobs is difficult so as to try and increase the amount of savings made. Some economist analysts feel that there is no need to celebrate the supposed increase in the number of jobs. The positive growth in the number of jobs available has been tied to the increase in the number of retiring baby boomers. There is also a high number of individuals who have given up on finding full time jobs and have settled in the available part time jobs. The rate of pay for such jobs is low which lowers the standards of living for many individuals in the economy (Ip 1).

It is only after the rate of wages being paid rises above 3.5 % that the country’s employment rate would be considered to be really successful. Until then, the government and private sector should work together to increase jobs and contribute to global processes that reduce the cost of production for the country’s traders and manufacturers. There had been excitement that the rate of employment was growing at a high rate, and an economic policy would have to be drafted so as to slow down economic growth and avoid inflation in the near future. However, an increase in the number of available jobs will not be sufficient (Ip 1).

The rate of employment has to be coupled with an increase in the amount offered to the employees, if the rate of spending is to increase. If the economy is to experience a dramatic growth, the people would have to higher spending power which would in turn result in increased liquidity. Most of the new jobs that have contributed to a higher level of employment are in the health, manufacturing and hospitality: restaurants sectors. The low rates of wage that employees are paid could be a reason that there are low motivation levels among employees. Low morale among workers results in lower productivity which might continue to stifle wage rates.  It is expected that the positive growth of the rate of employment will result in the reduction of interest rates by the Federal Reserve which will in turn result in more banks and other financial institutions offering loans at friendlier interest rates.

 

 

Works cited

Ip, Greg.  America’s Jobs report: deceptively dull. 2014. Washington: The Economist. Accessed

November 12, 2014 from

http://www.economist.com/blogs/freeexchange/2014/11/americas-jobs-report