Structural Unemployment

Word Cloud Report Structural Unemployment in U.S

A.

The Huffington Post and the Economist both reported on structural unemployment in the U.S.

Author of “Persistent Structural Unemployment” S.D. Shibullal for the Huffington Post commented on the prevailing factors of tireless unemployment factors and the side effects that the American government has to deal with. Shibullal states that structural unemployment is not just a national issue but rather a global issue. What he believes needs to happen is that there needs to be regulated government structures that create incentives for companies to invest in their workers. The work force has changed and the average worker has to think on a global scale. With youth unemployment being the main focus, the emphasis lies within proper training and education. We have to invest in our youth because it is our responsibility to. Shibullai also comments that we cannot blame technology for unemployment because jobs are not disappearing, instead they are evolving.

In the Economist article, “The ‘quasi-structural’ unemployment issue”, FRED data shows the long-term trend of participation in the labor force. The main deciding factor in work force participation is the wage and how high it is. With lower earnings you can see lower participation. The article concludes that long-run unemployment is more relevant because many workers are falling out of the work force. The tightening work force creates a sense of urgency to try and rid of structural challenges. Rising wages create incentives for companies to train their workers but also induces laziness amongst some Americans because companies are more likely to recruit and train new workers. The increasing wage can only go so far before it runs into possible high inflation risks creating more problems.

B.

The two articles include many valid points and raise many topics of concern with structural unemployment. I believe this topic is so relevant and important...