As the year 2012 comes to an end, many Americans, about seven millions Americans are reflecting back at a lost year. There are seven million Americans currently in this country who do not have regular employment. Which leaves millions of Americans asking and wondering “Will 2013 be a better year to look for work?”.
The unemployment rate in this country is currently at 7.9%. Many economists and political analysts feel that the number speculated by the department of labor is much higher. Many reputable and legitimate economists feel that many Americans have simply stopped looking for jobs. Many say around fifteen million unemployed Americans have stopped looking for work, simply because there aren’t jobs out there. Basically, because the labor department bases the unemployment rate on the number of people searching for jobs through their networks, and not other commercial and private search sites such as Monster.com or Indeed.com, the number could be closer to 15%-20%. That combined with the people who have stopped looking for work entirely you are looking at an unemployment rate close to if not over 30%.
Those numbers are of course speculation and can be inflated as a scare tactic, for example some members on the right would like you to believe that with some fancy math the unemployment rate is over 50%. Now obviously that number is extreme and even over 30% seems to be a little inflated but just ask around? It doesn’t take a thirty year political analyst to know that the unemployment rate is over 7.9%. Everyone knows at least two people who are unemployed, or underemployed, many of whom lost their job this year. So it is my opinion that the actual unemployment rate is closer to 15%-20%, with all of the above factors considered.
What’s causing the unemployment rate to be so high? Well there are a lot of answers ranging from very complicated to very simple. One of the first reasons is kind of common sense, and that is businesses just don’t have the money to employ people. Company’s are downsizing and laying off divisions of people just to maintain a bottom line and stay in the black. There just aren’t as many well paying jobs out there because company’s are very afraid of the unstable economy.
The next reason is directly related to the the previous one, because there aren’t a lot of jobs, there is a flooded job market. With the classes of 2011 and 2012 searching, the market has become completely flooded with people searching. There are young adults from the class of 2011 who are still looking for a job, and the ones who where lucky enough to find jobs have most likely been laid off. Then the class of 2012 graduates expecting an open job market and there is quite literally nothing out there for them. So now you have recent college graduates searching for jobs and taking menial labor jobs, a millennial unemployment rate at nearly 40%, 48% of the classes of 2011 and 2012 combined are unemployed, and of the supposed 7.9 percent unemployed nearly 42% are under 25 years old. This is the first generation in American history that is not doing better and may not do better then the previous generation. What all of this means, is that this is an employers market. Employers can be very selective about who they hire and they can choose people whose resumes’ are exactly matching the job description.
Another large contributor to the unemployment rate, is that 2012 saw the lowest retirement numbers in American history. Millions of Americans decided that they weren’t going to, afraid to, or absolutely couldn’t retire because of the economy. This has left millions of jobs that should have been vacant and filled by someone younger or eager to work, occupied. So because people aren’t retiring, now the people who can’t find jobs have to look elsewhere.
Which leads me to the final reason. There are no jobs out there. Yea simple and obvious I know, but the bottom line is that there are no more American jobs. There is no such thing as American industry anymore. Now I have spoken about college graduates, and people with years of business experience but the unemployment problem is not just confined to the city. The heartland is the hardest hit. The areas of the country where higher education isn’t easily accessible and typically the youth turns to farming and industry, but now those jobs aren’t even there. The farming jobs that generations of families have had are becoming nonexistent and industries such as steel, auto, oil, and coal are being shipped over seas. Our country imports more then it exports and corporations make there money on what they can buy and sell for the highest profit instead of what they can make and sell for the highest profit. Nearly 80% of the United States wealth is concentrated within seven banks. The rest is spread throughout various industries the main one being agriculture. So the jobs, just don’t exist.
With the fiscal cliff looming, unemployment benefits are apart of the items to be slashed on December 30th. That means nearly two million Americans will be completely without any source of income come January 1st along with three million more set to lose there benefits from February to April. This combined with no job prospects, and more people beginning to search for work, the outlook for 2013 is not good for those who are currently unemployed. Bottom line, 2013 doesn’t exactly look, like the year of opportunity.