Unemployment in the USA Causes, Flaws, And Remedies

topic proposal

Unemployment in the USA: Causes, Flaws, And Remedies

Aims and objectives

1.To investigate the rate of unemployment in the USA.

2.To analyze the causes of unemployment in the USA.

3.To determine the flaws of unemployment in the United States.

4.To identify possible solutions for unemployment in the USA.

Type and sources of data and methods of data analysis

This study will evaluate unemployment in the USA, its causes, flaws, and feasible solutions. The research will include both quantitative and qualitative secondary data. Quantitative data will consist of numeric data, such as unemployment rates. Qualitative data will have information like the effects, causes, and solutions for unemployment in the country. The research will obtain this data from secondary sources like websites, reports, peer-reviewed journal articles, and other sources. The primary database that the research will consult is Google Scholar, with the keyword ‘unemployment.’ Given the data type, the methods of data analysis will incorporate literature review, statistics, and content with analyses.

Literature Review

The USA’s unemployment rate has remained stable in the 21st century, except during the financial crisis of 2008-2009 and the coronavirus pandemic of 2020 (Richter, 2020). According to Richter (2020), the hospitality, tourism, and financial sectors are more prone to these seasonal unemployment crises. Other than crises, there are various other causes of unemployment in the USA. The American Debt Help Organization (ADHO) says that these causes depend on the type of unemployment (frictional, cyclic, and structural) (ADHO, 2020). Economic slowdowns cause cyclical unemployment due to the slowdown in demand. In contrast, the mismatch in the job market due to challenges in training and education or advanced skills requirements causes unemployment (ADHO, 2020).

A high unemployment level is a significant challenge for any economy. Tcherneva (2017) says that unemployment is an epidemic that affects various other factors of an individual and the entire community. Unemployment results in poor health, mental strain, and poor living conditions of the unemployed individual. For the community, unemployment increases crime rates, spending on public health, and high mortality rates (Tcherneva, 2017). These impacts go through the social, and economic sectors of society. Therefore, it is important to come up with solutions for high levels of unemployment.

Economic stimulation, job guarantee, and universal basic income are among the critical solutions to unemployment (O’Halloran, Farnworth, Innes & Thomacos, 2018). Economic stimulation involves increasing the money supply to encourage increased demand for goods and services. Ehrenberg & Smith (2016) explains that this solution is highly effective for demand-deficient (cyclic) unemployment. Furthermore, according to O’Halloran, Farnworth, Innes & Thomacos (2018), job guarantee policy is a demand-side solution, whereby the government and companies offer guaranteed employment to workers. This solution is effective in curbing seasonal and other types of unemployment. The USA provides unemployment benefits to its unemployed job seekers and this policy is beneficial in reducing unemployment.


ADHO. (2020). U.S. Unemployment. Retrieved 30 June 2020, from https://www.debt.org/jobs/unemployment/united-states/

Ehrenberg, R., & Smith, R. (2016). Modern Labor Economics: Theory and Public Policy (12th ed.). New York, NY: Routledge.

O’Halloran, D., Farnworth, L., Innes, E., & Thomacos, N. (2018). An occupational perspective on three solutions to unemployment. Journal Of Occupational Science, 25(3), 297-308. doi: 10.1080/14427591.2018.1474128

Richter, F. (2020). Infographic: Unemployment Rate Remains Historically High. Retrieved 30 June 2020, from https://www.statista.com/chart/21660/unemployment-rate-in-the-us/

Tcherneva, P. (2017). Unemployment: The Silent Epidemic. SSRN Electronic Journal, 1-11. doi: 10.2139/ssrn.3025544

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