The Effects of Unemployment
One of the biggest problems right now is that job loss is part of the economy. Unfortunately there are hundreds of people losing their jobs everyday. Jobs are being cut and thus causing massive layoffs and firings. People are becoming very worried about where this turn is taking the economy and how the people will come out in the long run.
Although in previous months, the unemployment rate may have gone down, companies are still having to cut jobs back. This has a sour result on the economy as a whole. If there are no jobs, this causes people to live off of unemployment funds which drains those reserves. This also means if there are no jobs, people are not spending money which in turn hurts the economy.
Since the consumer confidence is down because of job loss, this means no one is purchasing cars or other major purchases. There are fewer home sales as people are unsure about the future of their jobs. When one looks at the economy, consumer spending makes up seventy percent of it. This means if no one is spending money to buy things such as electronics, clothes, or extras, then the economy suffers.
Reports have shown a decline in the unemployment rate. This is partially due to job hunters giving up the search. Many people have chosen to do things such as go back to school and other opportunities. Another problem with job hunters are the skills needed. When manufacturing companies send their manual labor overseas or turn to more computer-oriented means, the need for skilled computer operators are needed. Due to the job loss, it is harder to find skilled individuals in the job pool.