Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Is unemployment really affecting people in the US?

Call me naive and ignorant...I live in Perth, Western Australia and haven't been aware of too many instances of job losses (just yet anyway)...I work as an accountant so naturally stay well read on current economic conditions, but I get the impression that there are significantly more job losses in the US than I thought (given the unemployment rate was around 6% over there last time I checked)...job losses here relate mainly to the financial services industry (brokers, bank staff)...staff recruitment has certainly slowed, but employers aren't sacking employees just yet...

Update:

yes, this is true Jared...great answer

Update 2:

thanks for your answers...it makes me appreciate my job that little bit more...lets hope things turn around soon

7 Answers

Relevance
  • Vahé
    Lv 5
    1 decade ago
    Favorite Answer

    The short answer is yes.

    Unemployment always affects the unemployed. But we are seeing a large increase in the unemployed. Also, the 6% figure may not seem like much, but it is very important to remember that the unemployment rate is always those who are ACTIVELY seeking work. It does not count those who have simply given up looking or are otherwise out of the labor force. Thus, some estimate that the real jobless rate is much higher, some say as high as 12%. Also, with a downturn in production levels due to lessening demand, many people find themselves to be underemployed. Many people have had to go to part-time work or less pay. This is a real crisis for many working families, particularly those with children, as they cannot afford basic necessities. But these people do not count as part of the unemployment rate. So the low sounding number of 6% masks the real hardship the rise in unemployment creates. I might add that with the increase in the unemployment rate, the competition for the remaining jobs increases and it is harder to find employment. Also, the budget crisis in many states and the strain on unemployment insurance has made it very hard to cover unemployment benefits. Many states are prohibited from running deficits and the backup funds are running low. So, it's a real crisis.

    From the wikipedia article "Unemployment":

    "The unemployment rate may be different from the impact of the economy on people. The unemployment figures indicate how many are not working for pay but seeking employment for pay. It is only indirectly connected with the number of people who are actually not working at all or working without pay. Therefore, critics believe that current methods of measuring unemployment are inaccurate in terms of the impact of unemployment on people as these methods do not take into account the 1.5% of the available working population incarcerated in U.S. prisons (who may or may not be working while incarcerated), those who have lost their jobs and have become discouraged over time from actively looking for work, those who are self-employed or wish to become self-employed, such as tradesmen or building contractors or IT consultants, those who have retired before the official retirement age but would still like to work (involuntary early retirees), those on disability pensions who, while not possessing full health, still wish to work in occupations suitable for their medical conditions, those who work for payment for as little as one hour per week but would like to work full-time. These people are "involuntary part-time" workers, those who are underemployed, e.g., a computer programmer who is working in a retail store until he can find a permanent job, involuntary stay-at-home mothers who would prefer to work, and graduate and Professional school students who were unable to find worthwhile jobs after they graduated with their Bachelor's degrees."

    PS. I know someone who just lost his job, and I don't feel like I can get one.

  • 1 decade ago

    Ya job losses in some area's is about 6% but in a lot of places it's as high as 11%. I live in the auto making area "Mich" and I got laid off and can't even find a job at McDonald's. So yes it is bad, very bad when you can't even find a part time job. Or you see people walking along the street looking for bottles and cans to return for money. I am worried because my unemployment runs out in March and I know of one extension but what if there is not jobs after that? I am very worried, I can't just sell my house and move, no one has money to even buy my house.

  • 1 decade ago

    It's up to 6.7%, which is up 2% from this time last year and the highest it's been since 1993. Another concern is that unemployment has been steadily rising. We've seen worse unemployment rates, but they aren't insignificant.

  • Anonymous
    1 decade ago

    The world is inter related and the domino effect has begun. You may not be experiencing the effects right now but you will.

  • 5 years ago

    Welfare, unemployed people are entitled to benefits. They also don't pay taxes which further affects the welfare system.

  • 1 decade ago

    yeah it's getting bad. i know quite a few people in my circle that have been affected (me included). and i hear about more and more businesses that are starting to layoff. so it's a sign of the times, but what doesn't kill us will only make us stronger.

  • 1 decade ago

    It is 6.7 % In January it was just 5.6% That is a 1.1 % rise, that is huge! It is bad here in america.

Still have questions? Get your answers by asking now.