The rate of unemployment in the United States now effect a segment of the population that historically has been more immune to systemic shocks to the economy that raise the unemployment rate to those more prone to economic shocks. Individuals more prone to be unemployed during times of high unemployment became long-term unemployed and unable to participate in the economy due to labels including ‘lack of employable skills’ and ‘unemployable’. Individuals more prone to unemployment during times of high unemployment are also seemingly the toughest to employ as reentry back into the workforce.
Government can facilitate hiring of workers into the private sector but cannot ensure that the private sector is fairly employing the employable given qualifications and collective experiences. Businesses often find the means of lowest cost when assessing labor costs and if the job is to train and hire for a semi-skilled worker, many employers are looking to undocumented workers as a workforce solution. Employers capable of paying workers off of the payroll will prefer undocumented workers. Businesses hiring immigrants on work-permits (Light, Clinic, 2013) will also pay these workers less than a comparable U.S. based worker. The solution to the problem is two-fold.
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Primarily, reducing the unemployment rate requires the private sector to favor currently unemployed workers, generally by providing a tax incentive or training subsidy incentive to enable private employers to obtain unemployed workers and retrain these workers to create stability in the workforce. Additionally, the government must facilitate tax policy to make the jobs better operators in the U.S. rather than overseas. After adjusting for quality, employers will relocate to where the cost per worker and to run the business is cheaper.
Jobs such as supermarkets will choose to hire part-time workers rather than full-time workers if costs are too high, such as with healthcare. Businesses must be able to more effectively provide healthcare to their workers at a lower cost than what is currently proposed as new healthcare legislation. Many businesses refuse to hire due to the cost to insure each worker including salary and other benefits.
- Asudev, V. (2012, June 22). LACK OF EMPLOYABILITY SKILLS IN YOUNG GRADUATES: WHOM TO BLAME?. ToolsAcademy.net. Retrieved April 3, 2013, from www.toolsacademy.net/blog/?p=40
- Light, S. O., & Clinic, T. E. (April 1, 2013). US visa day sparks new debate on tech workers. Phys.org – Science News, Technology, Physics, Nanotechnology, Space Science, Earth Science, Medicine. Retrieved April 4, 2013, from http://phys.org/news/2013-04-visa-day-debate-tech-workers.html
