Reasons for Increasing Unemployment in the US


Governments across the continents are working on ways of ensuring that their people have jobs in order to be able to meet their daily needs. In the US, the issues are the same, thus, the government faces the same problems regardless the fact that the USA is the country with the largest world’s economy. It is has a great percentage of unemployment and this issue is on the rise. This paper will show reasons of unemployment in the US, problems related to the population growth in the country, and solutions that the country hopes will put an end to these problems.

Why unemployment is on the rise?

Private sector market which helped a lot in the part of employment experienced setbacks which contributed to unemployment, as this sector employment rates are the highest. The economy is on the rise, but still unemployment rates also rise. Population growth is also a factor of unemployment, meaning many people seek the same job opportunities. This is a bit harder for those who have a low level of education. Another problem causing unemployment is the lack of growth in the labor market. This is because of reduced income for many people, making them to reduce their daily consumption.

These days manufacturing companies have to use machines which are more productive which prevents them from employing people as they are less productive. Work by machines has replaced a lot of people, making them loose their jobs. This increases the rate of unemployment which has greatly contributed to low livelihoods. Those who loss their jobs are those with low positions due to their education levels making it even harder for them to get employment in other places.

Government policies that the US has put in place to enable economic recovery also act as setback for private sectors not to employee people due to high cost of running the business, and thus causing unemployment. Another issue is to be competitive to other countries that are able to manufacture goods and services at a cheaper price and making the US manufactures go out of business, since nobody is willing to buy expensive goods and services while cheaper ones exist in the market, thus creating more unemployment.

Companies employ people who have multiple functions meaning one person can do work intended for more people making it convenient for employees to hire a small workforce creating more unemployment.

Remedies for unemployment

The US government should create a friendlier environment for investors inside and outside the country and this will offer more employment opportunities. The government should encourage small business which will help in the raise of the economy in a way that they pay low tax enabling more people to open businesses.

Producing cheaper goods but of high quality enhancing high production means that many people will gain more job opportunities. The US government should also make a point of lowering their currency exchange rate to facilitate cheaper goods in the market.


This paper highlights reasons for unemployment which are: the setbacks of private sectors from the government, increased population growth that makes jobs more limited, lack of growth in labor market, and government policies which are a bit harsh for businesses thus creating unemployment. Another issue is companies’ use of machines rather than human labor, and competition from other countries in the market. The paper has also outlined remedies for dealing with unemployment and if well executed, the unemployment in the US will be a thing of the past, hence facilitating a stronger and stable economy.