Unemployment

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remains to be one of the macroeconomic hurdles facing most countriesin the world. According to the Labor Department, the unemploymentrate in the United States has been steady, recordedat 4.9 percent in August2016[ CITATION Wel16 l 1033 ].is still a significant concern, with presidential candidatespromising more job opportunities for the youth. According to Rugaber,unemploymentrates rose in some swing states while remained intact in others. Forinstance,the Labor Department reported that Michiganincreased 5,400 jobs in the market in September however, theunemployment rate skyrocketed to 4.6 percent, from 4.5 percent[ CITATION Rug16 l 1033 ].On the other hand, the unemployment rate inNevada declined from 6.3 to 5.8 percent in September[ CITATION Rug16 l 1033 ]. is a significant economic aspect because it posesadverse social and economic challenges in a country.

Oneof the costs of unemployment includes theloss of revenue by the federal government[ CITATION Hub14 l 1033 ].Employment offers the government revenue through income tax thuslack of employment deprives the government a significant amount oftax. Additionally, it leads to a declinein the Gross Domestic Product (GDP).According to economists, unemployment is inversely related to output,and this implies thathigh unemployment rate causes a considerable drop in the GDP[ CITATION Hub14 l 1033 ].On the other hand, unemployment creates inequality in income andwealth. Elevated levels of unemployment develop a gap between thehaves and the haves not. Therefore, it results in unequaldistribution of resources in the country. Finally, unemployment tendsto heighten socialproblems within the society such as poverty, crime, social unrests,and unsanitary living conditions[ CITATION Hub14 l 1033 ].The federal government continues to fight unemploymentchallenge in the country in ensuring social, economic, and politicalstability and prosperity.

References

Hubbardet al, G. (2014). Macroeconomics.Melbourne: Pearson Australia.

Rugaber, C. S. (21, October 2016). Some Swing State on the Rise. US News, 1-3. Retrieved from: http://www.usnews.com/news/business/articles/2016-10-21/unemployment-rates-rose-in-3-of-8-us-swing-states-last-month

Wells, N. (2, September 2016). Jobs number: What`s the real unemployment rate? CNBC, 1-5. Retrieved from: http://www.cnbc.com/2016/09/02/jobs-number-whats-the-real-unemployment-rate.html