Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find it. This can be caused with copious reasons such as increased population, rapid technological changes, lack of education or skills for employment, rising cost, and more. In particular, recent economic and social changes due to COVID-19 pandemic have affected unemployment rates worldwide. Among many countries, the United States maintained a 4 – 6% of unemployment rate from 2000-2005, according to the outside reference. However, the outside source stated that the unemployment rate unexpectedly rose to around 10% due to the financial crisis in 2010.
After the financial crisis, the unemployment rate gradually fell again until COVID-19 pandemic in 2021, responsible for the rise of the unemployment to 13.3% given by the other source. Americans either could not get hired or lost existing jobs because the COVID-19 interfered with their daily tasks and the U.S economy to a severe level. For instance, employees who have children were required to take care of them while working at home in a parallel manner. Furthermore, in terms of the employers and companies, it would put them on spot to hire new employees while the companies are financially at risk due to the impact of COVID-19. To add on, some companies are providing lower salaries to existing employees to maintain their financial status.
Consequently, these situations have led to income losses and unemployment issues of Americans. Even though the unemployment rate began to decline again in the second half of the 2020, reaching about 6.3% in February 2021, many believe it has been understated by people misclassifying themselves as being “employed but absent from work.”, according to a different source. If unemployment resumes, American society will face severe constructive effects which can trigger financial and social problems. For instance, individuals might subsist with low income in addition to anxiety and stress from unemployment which can ultimately stimulate one’s lack of self-esteem and confidence. This condition might lead to possible depression and other disorders. To prevent subsequent damage, the United States should be more concerned about unemployment problems.