Chronic unemployment is the biggest problem faced by our country today. More than 11 million Americans are receiving unemployment benefits now. Half of them are receiving compensation for more than 26 weeks. The Federal government extends the unemployment compensation period to 99 weeks in some areas, where high unemployment problem persists. A few states need worker contributions, but unemployment compensation is funded largely through employer taxes. This adds the additional pressure on job creation sector in our country. In order to solve these problems, we first need to understand the effects of long term unemployment. Jobenomics, an excellent price of writing written by Chuck Vollmer gives plenty of details that help you to know employment crisis and job creation better. If you want to buy this book, just follow this link www.jobenomics.com
It is estimated that nearly 100 million Americans (one third of total population) receive some form of benefit relating to long term unemployment. Unemployment compensation, food allowance, housing assistance, Medicaid, free cell phones, educational benefits and other cash programs are included in the safety net benefit programs of our government. They exclude only Social security and Medicare benefits. Our government is spending nearly $500 billion per year in these programs. If long term unemployment persists, the government may need to give permanent entitlements, instead of temporary reliefs.
One of the US Senators tried to reduce unemployment compensation in March 2010. He faced severe protestations from the public, who blamed that he was too unsympathetic to cut these benefits. Even the members of his own conservative party did not come to his rescue. Washington politicians have learnt a lesson from this. They have understood that unemployment benefit is an emotional issue and it is better to consider it as an entitlement.
The number of people who are unemployed for long term (more than 26 weeks) has increased from 3.7 million in April 2009 to 6.7 million in April 2010. The median duration of long term unemployment has increased from 11.7 weeks to 21.6 weeks. If this situation continues, it will be the major factor in determining our budget. Many long term unemployed are in real danger now. The effects of unemployment are often chronic. When the unemployment benefits have exhausted, they have no other way except borrowing from their friends and family and selling precious valuables. Enhancing the period of unemployment benefits will not offer a solution to this problem. Creating high value, enduring job is the only possible way to get rid of this problem.
The number of jobs available for unemployed is reducing significantly. In the last decade, one in two applicants got a job. Now, only one in six applicants is getting a job. The problem is severe for unskilled workers. They have to wait for a long time even for applying for a suitable job. Jobs creation in private sector can provide a solution to this. If we do not create new jobs, the number of workers moving from employment to underemployment, unemployment and long term unemployment will increase rapidly.
Chuck Vollmer’s Jobenomics book supports the 20 million jobs by 2020 campaign. It specifies the ways to implement it in a simple language. Get your copy of this informative book by visiting www.jobenomics.com