Why there is very much unemployment in USA?
Answers
Explanation:
Economic conditions: The U.S. faced the subprime mortgage crisis and resulting recession of 2007–2009, which significantly increased the unemployment rate to a peak of 10% in October 2009. The unemployment rate fell steadily thereafter, returning to 5% by December 2015 as economic conditions improved.
Demographic trends: The U.S. has an aging population, which is moving more persons out of the labor force relative to the civilian population. This has resulted in a long-term downward trend in the labor force participation rate that began around 2000, as the Baby Boomer generation began to retire.
Technology trends, with automation replacing workers in many industries while creating jobs in others.
Globalization and sourcing trends, with employers creating jobs in overseas markets to reduce labor costs or avoid regulations.
International trade policy, which has resulted in a sizable trade deficit (imports greater than exports) since the early 2000s, which reduces GDP and employment relative to a trade surplus.
Immigration policy, which affects the nature and number of workers entering the country.
Monetary policy: The Federal Reserve conducts monetary policy, adjusting interest rates to move the economy towards a full employment target of around a 5% unemployment rate and 2% inflation rate. The Federal Reserve has maintained near-zero interest rates since the 2007–2009 recession, in efforts to boost employment. It also injected a sizable amount of money into the economy via quantitative easing to boost the economy. In December 2015, it raised interest rates for the first time moderately, with guidance that it intended to continue doing if economic conditions were favorable.
There are a variety of domestic, foreign, market and government factors that impact unemployment in the United States.
1) The U.S. has an aging population, which is moving more persons out of the labor force relative to the civilian population.
2) Technology trends, with automation replacing workers in many industries while creating jobs in others.
3) Immigration policy, which affects the nature and number of workers entering the country.