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Causes of Unemployment in United States of America

Updated on October 30, 2019
Uzochukwu Mike profile image

He is a writer on youths, challenges, engineering, computer and insurance. He is certified by Young African Leaders Initiative on Workforce.

Major Causes of Unemployment in U.S.A

Causes of unemployment in the United States of America. The loss of jobs in U.S is a big challenge.
Causes of unemployment in the United States of America. The loss of jobs in U.S is a big challenge. | Source


Is there unemployment in United States? Unemployment in the United States has been a big problem that the country has been facing for a long time. When the former president of the United States in the person of President Barack Obama was campaigning for his presidential sit, one of the major plans he had in mind was job creation for the citizens of the United States of America, USA. He made this one of his principal agenda and because of that got many Americans that voted him into the post.

In December 2013, estimate of about 6.7 percent citizens of American were unemployed. In September 2019, US Bureau of Labor Statistics released new data on employment in the country and other sectors. According to the news release by BLS, "the unemployment rate declined to 3.5 percent in September, and total nonfarm payroll employment rose by 136,000, the U.S. Bureau of Labor Statistics reported today" (News Release by BLS). Employment in health care and in professional and business services continued to trend up.

What is unemployment? Unemployment can be defined as a state where people are without job and are frequently looking for work. People who are 16 years old and above are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work (Bureau of Labor Statistics of United States in 2012).

Causes of Unemployment in the United States: Issues that worth Addressing

As stated before, the issue of unemployment in United States of America does not just happen. In this section, we will be discussing in details why the unemployment happen in the country.

Technological Advancement

Technological advancement is one of the major causes of unemployment in the United States of America; though this believe is opposed by the technophiles. Today, technology is growing from year to year and it is adversely affecting employment rate; though it has many advantages attributed to it. It does good but at the same time harm people of United States in terms of unemployment, though not all citizens.

Robots are beginning to do the works that human are supposed to do. Many years ago when crude materials and manpower are needed for cultivation of crops in US, farmers work and get paid for their cultivation of plants. But what is happening in United States today? The works that are to be done by farmers are being taken over by machines constructed by engineers. This results to most of the works that are to be done by manpower being done by machines, which no longer give local farmers room to cultivate.

FIFA, which is an organization that sees over the affairs of football in the world, is planning to introduce robot in the world of football to take over the position of referees that officiate football matches. If this becomes successful, then unemployment among football referees in United States will increase and also in the world in general.

Political instability

This is a cause of unemployment in United States. A president may be ruling for a period of four years rebuilding what have been damaged by the former president with the hope of generating more jobs for the citizens during his second tenured in the office. His sole aim may be to generate jobs for the citizens of USA, but the emergence of another president on the position can spoil what he had been planning for a long time.

The new president may not at the back of his mind have employment generation as one of his main agenda. He may have how to build the security department for the military forces to acquire important skills as his priority. This is why some people prefer certain presidents to stay in leadership position longer than the other because what the former may be doing is preferred to the later.

Economic recession as one of the major causes of unemployment in United States of America. The problem really affected the country.
Economic recession as one of the major causes of unemployment in United States of America. The problem really affected the country. | Source

Economic Recession

Another cause of Unemployment in United States of America is economic recession. This had been the major cause of unemployment in the World Power for over two years from now. Truly, Americans lost a lot on the attack made by terrorists in the World Market on September 11, 2001. The incidence is still sounding as a dream to many Americans and many could not withstand the shock caused by such attack.

What are the state and the feature of those who lost their lost ones through that attack? There are those who lost everything they had through that incidence and till today do not know their left from their right. Some who were “seriously wounded” by the crisis are “marrying” poverty as their second wives.

Because of the attack, many who would have been employed in one or more of the establishments in the location are no longer employed. The economic recession caused a lot of problems to US Financial Institutions and failures of U.S. credit rating agencies and regulators.

Globalization of Markets and production

Globalization of Markets and production is one of the causes of unemployment in the United States. Globalization is the process through which worldwide markets integrate or unite together. This unity demands computer skills in many cases and any who lacks this knowledge may be floating in the recent world of marketing.

For instance, if you want to work in United States of America and their services at that moment requires one who can connect to other marketers or costumers in the world with the experience of internet join with working with computer, when you possess no such experience, them unemployment becomes your brother.

Again, as a result of globalization, Americans are getting tired of working online because people from other countries whose currencies have lesser value take works which are supposed to be charged higher by Americans at lower cost. The reason is because those from other countries whose currencies are low know that by converting such small dollars they charge, the money becomes higher in their own national currencies.

Take for instance that you are an American and you know how to write winning essays for students and you fix your price at $50 for each essay you write for students. I for example may come from Democratic Republic of Congo and can write the same winning essay for just $5 because my currency has low value, and when I convert the $5 to my national currency it becomes a huge amount of money. I do not commit any class of offence because what you do is what I do. We two market our writing skills on the same website and that is globalization. Because you as a citizen of United States do not sale, you quite from work and hence become unemployed.

Unemployment is a global issue. The problem does not affect United States of America alone but also other countries of the world.
Unemployment is a global issue. The problem does not affect United States of America alone but also other countries of the world. | Source

Lack of skill acquisition

Lack of skill acquisition among Americans is also a member in the family of causes of unemployment in the United States. There are many importance of skill acquisition in every country. This is also one of the major causes of unemployment all over the world. Lack of important skills which makes people unsuccessful in life is one of the major causes of unemployment among American youths. Importance of youth empowerment cannot be overemphasized at this point. So, the youths should be empowered in the area of skill acquisition.


Nobody in any way will like to be addressed as being unemployed. You as a reader of this piece at the same time will not be happy to be unemployed in life. This article discussed the causes of unemployment in the United States of America at large. As discussed, the causes of unemployment in the country are: Technological Advancement, Political instability, economic recession, Globalization, and Lack of skill acquisition. Note that it is possible to have other causes of unemployment in United States of America that are not mentioned in this piece.


  • The Financial Crisis Inquiry Commission, 2011
  • Bureau of Labor Statistics of 2012 of USA
  • BLS (2019), THE EMPLOYMENT SITUATION — SEPTEMBER 2019, published by US Bureau of Labor Statistics, United States
  • 2013 International Labor Organization Record on Unemployment
  • High Unemployment in the United States: Causes and Solutions by Tong, Carl H.; Tong, Lee-Ing; Tong, James E.
  • Unemployment: Causes and Solutions by Uzochukwu Mike
  • Globalization and Unemployment: The Downside of Integrating Market

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2014 Okwuagbala Uzochukwu Mike P


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