Solution to Unemployment in USA Lynn MA as a Case Study

Unemployment Lynn MA Case Proposal

In the U.S. unemployment has hit record highs. Unemployment of large segments of the working population, with rates as high as 9.5% in the general working population and 18% among young people affect everyone as these individuals are stagnating and struggling to provide for themselves and their families. (Fried, Revell, Rosato, Yahalom, Poppick, & Swiatek 76) The current recession has created consumer restraint as more and more people face and fear unemployment as well as concerns about financial security in general. This has resulted in U.S. unemployment rates based on both lower demand for products and services and corporate hiring conservation. ("Economic Policy" 15-16) In the state of Massachusetts the unemployment rate remains slightly lower than the national average at 7.3% as of October 2011, yet the problem is still one in need of address, and the unemployment rate in the Boston area including Lynn Massachusetts area is 7.7%. (U.S. Bureau of Labor Statistics) If the issue of job growth is not addressed rapidly, and especially among the young the economy will continue to falter on large scale as individuals fearful of their employment status will continue to spend less and business will therefore invest less and hire fewer people. (Anderson B2)

National, State and Local Unemployment Issues

On the national level as has been stated the unemployment rate overall is higher than it was in the early 1990s in the wake of the technology crisis. (U.S. Bureau of Labor Statistics) The U.S. has had recent marginal improvements in unemployment but most are skeptical as the recession has taken such a hold on the nation. The experts contend that the unemployment rate will drop by .5% in 2012 and stress that there are still some areas of stronger recovery, such as education, technology and healthcare. These strength areas according to some will continue to recover and should be the focus of jobseekers and those seeking to improve skills to become employed or gain better employment. (Fried et al. 76) Yet, most have also been witness to false starts on recovery that the "good" news is met with continued concern. That continued concern on the part of policy makers, business owners (small and large) and consumers makes the recovery a distant hope for many.

Massachusetts in general has never, in the current crisis, hit the 1990's levels of unemployment and has recovered more rapidly in general than other state. According to a report by the Boston Herald this is due in large part to the strength of the education, health care and technology areas of employment found in Massachusetts and because the population of the state is highly educated. That being said the Boston Herald registers concerns that the whole of the state is not recovering and gaining jobs evenly, and therefore some communities are far more affected than others. ("Report" B1)

Boston can be said to be enjoying relative strength in its recovery again for those reasons listed above. ("Report" B1) Yet, Lynn, MA is one of those communities that struggles more with joblessness than the more metropolitan areas of the state as a Boston commute is often a challenge for the unemployed, yet the housing and other expenses are reflective of Lynn being a bedroom community for Boston. In Lynn, there are only a few major employers in the area, some of whom have continued to act conservatively into the "recovery" period. ("Report…" B1) Lynn has a much higher poverty rate and a lower per capita income than the rest of the state as well as the U.S., but major employers and others even as late as last month were still struggling with the low level of consumer confidence in the area. (Norton B3)

Contrary Evidence

Many feel as if we need to place our trust in the national government, seek extensions on unemployment insurance payments which are set to end in January and wait for the feds to come up with a workable plan to create jobs. Yet it is clear that these tactics have not been overly effective in the past and will not be for the long-term future. (Foroohar 24) ("Economic Policy" 15-16) The problem is that these tactics do not resolve the current consumer and business concerns which will continue to challenge jobseekers and businesses alike. Though the holiday may bring seasonal employment to some those without jobs now will have an increasingly difficult time finding them after they have experienced lengthy gaps in employment. (Fried et al. 76)

Action Plan