Arshad 1 Juwaria Arshad English 111 Brian Milward November 9, 2013 Youth Unemployment in United States Unemployment is a major

issue all over the globe. Recent aspects show that unemployment rates have increased and finding an occupation has become harder. The majority of unemployment is among the youth. According to Bureau of Labor Statistics the recent overall unemployment rate in United States of America was 7.3%, and unemployment rate among youth was officially 3.8 million in July 2013. Unemployment has been an obstacle in many countries; workers are willing to work at the current labor market but cannot secure employment. One of the main causes of unemployment is competition in labor market because there are only few jobs opportunities available. Where for every job opportunity, there will be always more than one qualified individuals. In order words, when one gets employed the others lack employment. Youth unemployment is caused mainly by the lack of education and shortcoming of jobs that are available. It is direct related to lack of education, training and skills. Due to the expensive education, people between the ages of 15-19 refuse to attend school. High school dropouts are more likely to be unemployed compared to students that have completed four or more years of college education. According to a U.S. government study, the annual earning of a college graduate is $45,000, compare to high school dropouts with $18,00. Minimal wage jobs may be easier to find, but they may not provide enough revenue to support and fulfill a family needs. Due to the lack of experience and ability of

Arshad 2 work students do not want to spend their money and time training them. In other cases where inexperience is not a priority, the salary tends to be very low which does not excite employees form working. The employers see them as less productive and skilled, so their pay is legally less. Some companies are hiring only skilled and experienced employees and abandoning workers with less experience (mostly youth). These are some reasons causing this growing issue. The lifestyle of high school dropouts and a college graduate can be entirely different, but it could also be similar. Increasing numbers of recent college graduates are ending up in relatively low-skilled jobs that, historically, have gone to those with lower levels of educational attainment. United States much increase the proportion of higher education to remain competitive in the global economy. Supporting those positions, some have issued studies demonstrating that there is a significant earnings premium associated with the possession of a college degree. That is, college graduates tend to earn more in the labor market compared with those with only a high-school education, a differential that is large enough to justify the expenditure of increasingly large sums of money necessary to finance a college degree. (Denhart, Robe) Unemployment also effects socially and economically. Unemployment rate increases when individual do not have the source of income. In such economy, there are high cases of robberies, gambling, prostitution and bribery. For instance, unemployed children create disturbance and frustration in a family. Their belief in education, interest in genuine qualification and faithfulness decreases. They would come up to a point where they kill either themselves or others. These effects are the reason why unemployment applies to social insecurities. It raises the dept. of human resources. Unemployed people

Arshad 3 are ineffective, in so the economy does not promote their production abilities. The growth of economy will show down and the economy will not get enough funding for the economy sectors to finance. An unemployed person cannot provide for himself. In order to live, he/she must need to find some occupation to enable the satisfaction of his/her wants. Apart from the social crisis and disappointment that unemployment produces negative impact on business and the economic health of the country. Unemployment raised federal and state taxes for small businesses. Smaller businesses have less money to spend so the business will not make profit. In situations where there is large percentage of people become unemployed, many small businesses will close out, the amount of money available for public spending will slow down and this will directly affect business. High unemployment makes consumer and business workers feel unconfident about their future in developing the skills. Unfortunately every country will always have a rate of unemployment. Everywhere in this world there is always a constant struggle for an occupation. The question is how can we cure unemployment? The obvious solution to unemployment is to create new jobs. A better growing economic needs to create $150,000 new jobs to keep the unemployment from rising. When unemployment keep raising above 6-7% it means that the economy isnt making enough to create jobs. Stakeholders that contributes toward reducing unemployment includes but not limited to: Government, Nongovernment agencies, college and training institutions, small businesses, and private large employers. Government not only employees a large number of people but it creates indirect opportunities by funding major projects, making policies, aid to training institutions,

Arshad 4 helping through bail outs and small business loans. Government use monetary policy and fiscal policy to sustained high unemployment. Monetary policy and fiscal policy can both be used to increase short-term growth in the economy, increasing the demand for labor help decrease unemployment. The demand in an economy is derived from the demand for goods and services. If the demand for goods and services in the economy increases, the demand for labor will increase, increasing employment and wages (Amadeo). Different temporary programs generate jobs that can play vital role in building up confidence among jobless people. There is no option but to increase government spending as people need it most just to stay in their jobs. Major projects like construction and running day-to-day operations in government always help local communities and by putting right policies to hire more people from VA and going local can definitely help. Governmental policies have direct impact on local business and all sorts of employers. Giving support for hiring more people and less employer contribution on tax will encourage employers to hire more. That will generate money in community and help businesses to grow even better. Non-Government organizations have been doing excellent job to help jobless and this time demands even better. Goodwill centers are full, which shows confidence of people on them. They can help not only to find job but also to improve skills. They can arrange meetings and classes where people can benefit from each other skills and can get training from fellow jobless. Networking and creating a database with large and small employer can make a real difference. Colleges, universities and training institutes should be more open to employers and should train students how to find a career. Right choice of courses and majors is very important and at early stages students mostly have no knowledge which field is going to

Arshad 5 be best for them. Its not always true that more education means more chances of job and pay, as professional degrees and courses are better than having any other educational attainments. Grants toward colleges, universities and training institutions create future of nation and allocating more money for local institutes and making free colleges for technical education is a great way nations practicing in many developed and developing countries already. Small businesses are key to our economy. Even though there is a higher risk on small business, though they provide numerous jobs making it more likely for them to succeed. More job means more money to spend in investment. Small businesses totaled 646,021 in Virginia in 2008. Of these, 151,505 were employers, and they accounted for 48.3% of private-sector jobs in Virginia (U.S. Small Business Administration). Minimum labor wage is so less that employers should be thankful to Government as compared to other developed economies. Improving small business will improve job numbers. The time when banking interest on savings is less than 1% and investing in Wall Street is risky than ever, investment in small business is best way to increase ones wealth and create job for many more. Training for small business success is a must thing and people who are already doing business can help new comers through guiding them about laws and regulations, accounting issues and field specific aspects. Small Business Administration should be expanded and should be more welcoming than a website and their offices should be created in all cities. Putting confidence and knowledge among small investors can create more jobs in small business. There are a lot of things that Jobless person should be doing. Reaching out to employers and human resource management is always helpful instead waiting from them.

Arshad 6 Seeking more skills and knowledge will not only help to pass the jobless time but will be benefit them forever. There are always opportunities to learn and improve skills from government and NGOs, so networking with such people and organizations is very helpful. Not only right skills but also to be at right place at right time is very important. Doing volunteer work and internship and starting and being ready to travel for a better future could be very beneficial.

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Work Cited Vedder, Richard. Employment and Unemployment Among Youth Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, 20 Aug. 2013. Web. Christopher Denhart, and Jonathan Robe. "Underemployment of College Graduates." Underemployment of College Graduates. CCAP, Jan. 2013. Web. Amadeo, Kimberly. Unemployment Solutions. About.com. The New York Times, 30 Aug 2012. Web 9 Nov 2013.