Unemployment continues to plague the citizens and the economy of U.S. these days as the unemployment rate dropped to 9.5 percent in June.
It has been two consecutive months since U.S. business firms fail to hire as many jobless citizens as they can. This slow pace of hiring is decreasing the chance and efficiency of the economy.
The economic recovery for America has slowed down along with the real estate industry slump, and a slow factory ordering. To add insult to injury, only 83,000 people were hired by private sectors for the past month. With these in hand, the economy is barely moving away from the recession.
The future of the economy will be decided if the economy itself can sustain on its own. With these, President Barack Obama argued that the congress should be extending the benefits for the unemployed citizens and the market should be stimulating consumer activity among their clients. He said, “We’re not headed there fast enough for a lot of Americans.” We’re not headed there fast enough for me, either.”
According to the Labor Department, the nation has experienced their first decrease in payroll in six months. The overall wage decreased by a number of 125,000 last month. Also, the U.S. Census Bureau completed its 10-year population count, as there was a 225,000 decline of temporary jobs.
Now, the country has to suffice 200,000 jobs for the unemployed for the country to decrease the unemployment rate. But nobody expects this job opportunity to come up because the government has already exhausted all means of compensation for the unemployed. Economists say that the unemployment rate will continue to stay around not lower than 9 percent through the elections in November. And the Fed also predicted that even in two years the unemployment would still be around 7.5 percent.
The economy may be moving in a horizontal manner. And if it does have an increase, it would be minimal. Along with the growing debts in Europe, a crumbling stock market, and a controlled consuming activity, the economy would be running constant in a very unwanted ground. That is why companies are getting strict in reviewing their accounts they have become tough in giving additional amounts for wages.
But with the job opportunities dramatically decreasing, there are still some companies who are planning to give jobs for the unemployed. Most of the companies opening up for job opportunities are automobile companies and government firms. One example would be Chrysler Group LLC, are opening job offers for at least 1,000 unemployed citizens. The company is expecting to add engineers and factory workers for they will be producing the new Jeep Grand Cherokee SUV.
President Barack Obama puts an optimistic side on the current issue as he said, “We are headed in the right direction. There is a great deal of work to do to repair the economy and get the American people back to work.”
However his options are limited as Senate Republicans go against his proposition of extending the benefits for over a million of unemployed citizens. According to Senate Republican leader Mitch McConnell of Kentucky, who led opposition to the extension, “The two things that are growing fastest in this Democrat economy are the size of the federal government and the crushing burden of the national debt.”
seerpress.com
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