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Unemployment The Impact Of Unemployment Term Paper

As unemployment rates dropped, crime rates responded as predicted by economic theory. One recent study revealed that the decline in unemployment resulted in a 30% decrease in crime rates from 1992 to 1997. In addition, a review of unemployment, wages, and crime rates by region shows unemployment and crimes rates falling together. According to Bernstein and Houston (2000): "As long as crime persists, strong crime prevention measures will be necessary. That is why labor markets, especially low-wage labor markets, can make a difference. To lift the economic prospects of all low-wage workers is not only a worthy economic and social goal; it is one that will pay off in the long run by offering potential criminals a legitimate alternative to crime."

As a result of the U.S. chronic unemployment issue, many people are settling for low-wage jobs (Sarkat, 2005). Despite the criticism that Wal-Mart receives for its low wages and minimal health benefits, the retail company had more than 11,000 applicants in California when it recently opened a new Oakland store. Stephen Levy, an economist for the Center for Continuing Study of the California Economy, said the pent-up demand for work reflects the region's slow recovery from the dot-com crash. "There's still a lot of people who were put out of work in the last four years who still don't have a job," Levy said (Sakrat, 2005).

In 2002, 1.7 million Americans slipped below the poverty line, bringing the total to 34.6 million. Over 13 million of these Americans are children. In fact, the United States has the worst child poverty rate and the worst life expectancy of all the world's developed countries. Approximately 31 million Americans were deemed to be "food insecure," meaning they did not know where their next meal was coming from.

Anxiety, depression, dissatisfaction with life, stress, negative self-esteem, hopelessness regarding the future and other negative emotional states have each been demonstrated in research studies to be higher in unemployed people than in matched groups of employed people (Mather, 1998).

The slow albeit steady recovery of employment raises concerns about job losses due to rising imports and "outsourcing," which are demonstrated...

While fears about the impact of globalization on employment are frequently blown out of proportion, trade-displaced workers do suffer negative adjustment costs, including significant wage losses when they find new jobs. In addition, certain regions, sectors and populations may be disproportionately impacted. While active labor market policies in the United States are relatively low, the nation has a targeted program for trade displaced workers, although its coverage is generally low. Therefore, there is a need for careful evaluation of unemployment programs.
This paper demonstrates the negative impact of unemployment on American society. In addition to the various effects and problems discussed above, a high unemployment rate can negatively impact wage dynamics, lead to discrimination and vicious circles among minority groups, and cause depression, apathy, and lack of self-confidence among individuals.

While the U.S. unemployment rate is significantly lower than it has been in previous years, unemployment is still a major social issue. Unemployment has a negative impact on society in many ways (Cotis, 2005). For example, high unemployment rates frequently result in increased crime, poverty, poor health standards, and substance abuse. For this reason, unemployment if a central issue in economics, as economists aim to learn more about the causes and effects of unemployment to improve the economic health of the nation.

Bibliography

Allegretto, Sylvia. Stettner, Andy. (March 4, 2004). Educated, experienced, and out of work. Economic Policy Institute Issue Brief #198.

Bernstein, Jared. Houston, Ellen. (July, 2000). What we can learn from the low-wage labor market. Economic Policy Institute Journal.

Cotis, Jean. (October, 2005). Economic Survey of the United States. Organisation for Economic Cooperation and Development.

Mathers, S. (1998). The health consequences of unemployment:the evidence. American Medical Journal168: 178-82.

Sarkat, Pia. (August 17, 2005). Want a Wal-Mart job? Join the crowd. San Francisco Chronicle.

Vedder, R. Gallaway, L. (1993). Out of Work:…

Sources used in this document:
Bibliography

Allegretto, Sylvia. Stettner, Andy. (March 4, 2004). Educated, experienced, and out of work. Economic Policy Institute Issue Brief #198.

Bernstein, Jared. Houston, Ellen. (July, 2000). What we can learn from the low-wage labor market. Economic Policy Institute Journal.

Cotis, Jean. (October, 2005). Economic Survey of the United States. Organisation for Economic Cooperation and Development.

Mathers, S. (1998). The health consequences of unemployment:the evidence. American Medical Journal168: 178-82.
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