Cyclical Unemployment - Viet 1 Viet Hoang Dr Spencer...

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Viet 1 Viet Hoang Dr. Spencer Economic 2301-002 03 March 2009 CYCLICAL UNEMPLOYMENT According to the example in the article, the needs for help of old people are surprisingly increasing. Normally, people are usually retired when they are old. However, a lot of people are still need to work at the age that should be used for relax and play with their grand children because of “outstanding mortgages, bank loans and high medical bills”. Comparing with the recession in 1981, the jobless rate of old people, from 65 and above, raises 1.4%, from 4.3% to 5.7%. The number of old people in work force is rapidly increasing compare with a decade earlier: 11.9% to 16.8% in group of workers 65 and older, 4.7% to 7.3% of group 75 and older. The Obama administration receives a lot of offers of giving a job to worker at the age of 55 and older. There are few programs in this field such as: the Senior Employment Center or the Senior Community Service Employment Program. One example from the article is Mr. Dase’s situation. When his credit card debt reached $29,000, he used $26,000 from home-equity loan to pay off most of it. However, he still needed to pay $5,000 back and $363/month for 8 years of home- equity loan. The problem here is that he was too old, 81 years old. He was quiet met a lot of difficult in finding job – never heard back from the employer. Luckily, he got the job from Senior Community Service Employment Program three weeks ago and got a better life. Mr. Dase is just one of about 92,000 workers that the Senior Community Service Employment Program helps each year; however, the number above is just less than 1% of the workers who would qualify to get help by the program. Other person, Louis Humphrey needs to work because she needs money to pay for her medications. Mrs. Dorothy Adam, the mother of seven children, at
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Viet 2 the age of 90 still works 20 hours per weeks. She cannot retire simply of “I don’t have the money to do that”. She needs money for raising her children. The last example in the example is the situation of Ms. Appleby. She worker at a small shop for 18 years and she just be laid off. She run out of money in building the new house 5 years ago and be limited in moving because her knee got weak, the result of old age. So she applied to the unemployment and waited for the new information. There are several reasons for this type of cyclical unemployment. Now, people who are covered by defined-benefit plans are fewer than the past year. In addition to this, the recession of the United States’ economy since last December 2007 causes a greatest economic crisis since after the World War II. Therefore, people are facing with a great issue of financial even the old people. That is what we learn from the course that cyclical unemployment happens when the total demand is insufficient to create full employment. The article above helps us understand more because it is the empirical information. Since the economic crisis, a lot of companies need
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This note was uploaded on 03/27/2012 for the course ECON 2301 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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Cyclical Unemployment - Viet 1 Viet Hoang Dr Spencer...

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