Jan
22

Recession in America-Will the Job Market ever recover?

Job losses in America have been ongoing for the past four years and no signs of improvement yet. The greatest high hit in December 2007 when millions of people became unemployed. Originally, it hit men harder than women since it began at the agricultural level. Factory and agricultural workers lost jobs when factories shut down or farmers were no longer needed. Also, people who didn’t have college degrees were hurt even more as jobs for them became nonexistent.

By 2009, the epidemic reached corporate levels with millions of people being laid off due to corporations “downsizing”. People who held Masters degrees and once worked as Engineers, IT workers, and especially those in banks now searched for any job available no matter how menial the work.

The recession began due to various factors.

  • The crash of the stock market hurt wealthy and middle class citizens since they held a majority of the stock. Due to this, thousands of Wall Street jobs disappeared, leaving those who once helped the flow of income stay constant, flounder on its own.
  • Government spending is a huge part of a recession. Misused funds can result in higher taxes and lower wages. Living standards suffer with loss of wages and salaries.

CNN Money reported that, between April 2008 and March 2009, a little over 7 million people were laid off from the low to high class. Analysts are saying 800,000 more jobs disappeared in this past year alone, raising the loss to 8 million. They don’t see a significant hike in jobs for at least three to five years, even though the economy is slowing making its way to a better place.

Why are jobs still scarce even with the upswing in economy? Businesses are uneasy of whether it will take a dive again so are postponing hiring thousands of workers. If it fails again, they would only have to fire more people and the vicious cycle will begin all over.

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