Surname 1 Surname 13 Students Name Institutional Affiliation Date Fixing Youth Unemployment The Bureau Labor of Statistics (BLS) produces a monthly report concerning unemployment, and it indicates the state and strength of the economy. In October this year, the unemployment rate increased to 3.6% from 3.5% in the previous month (Tradingeconomics.com para 1). America has one of the most prolonged economic recoveries in its history, and despite the continual effort by the government to create jobs, full employment levels have not been reached. Unemployment has adverse consequences on the overall economy, and there is a loss of significant consumer spending. When unemployment levels rise, it can be financially destructive to an economy. Over two million youths are unemployed, and most have given up having permanent employment (Bls.gov para 8-9). Failure to have a stable job in early adulthood can have a significant impact on the lives of individuals. Young people complete college, begin searching for employment, and if they cannot find, they ultimately give up on being employed. Constant rejection and the state of the economy contributes to many unemployed youths in a country. It is, therefore, important for an economy to analyze the root causes of unemployment and fix the problem. Understanding Youth Unemployment and its Causes Unemployed people are those who do not have a job, have actively searched for work in the past four weeks, and are currently available for employment (Amadeo, para 1). BLS uses household surveys known as current population surveys to measure unemployment. It is a practice that has been conducted since 1940 when the government was responding to the Great Depression. The survey results help to understand the unemployment rates for different people in society like youths and adults. The unemployment rate among youths refers to the number of unemployed youths between the ages of 15-24 years when it is expressed as a percentage of the youth labor force. Figure 1 shows the fluctuating rates of unemployment from October 2018 to October 2019. In the US from April to June 2019, the unemployment rate rose by 615,000, and this increase was similar to the rise for the same period in 2018 (Bls.gov para 9). In July 2019, the number of unemployed youths was 2.1 million. Thus the government needs to identify causes and solutions to create employment opportunities such that all the youths contribute to the growth of the economy. Figure 1: Monthly Youth (16-24) unemployment rate in the US from October 2018 to October 2019. Source: Bureau Labor of Statistics The graph shows the unemployment rates every month for youths across the US. It shows seasonally adjusted rates, which is a statistical approach to remove the seasonal component of a time series integrated with the analysis of non-seasonal tren ...

1. Surname 1
Surname 13
Students Name
Institutional Affiliation
Date
Fixing Youth Unemployment
The Bureau Labor of Statistics (BLS) produces a monthly report
concerning unemployment, and it indicates the state and
strength of the economy. In October this year, the
unemployment rate increased to 3.6% from 3.5% in the previous
month (Tradingeconomics.com para 1). America has one of the
most prolonged economic recoveries in its history, and despite
the continual effort by the government to create jobs, full
employment levels have not been reached. Unemployment has
adverse consequences on the overall economy, and there is a
loss of significant consumer spending. When unemployment
levels rise, it can be financially destructive to an economy.
Over two million youths are unemployed, and most have given
up having permanent employment (Bls.gov para 8-9). Failure to
have a stable job in early adulthood can have a significant
impact on the lives of individuals. Young people complete
college, begin searching for employment, and if they cannot
find, they ultimately give up on being employed. Constant
rejection and the state of the economy contributes to many
unemployed youths in a country. It is, therefore, important for
an economy to analyze the root causes of unemployment and fix
the problem.
Understanding Youth Unemployment and its Causes
Unemployed people are those who do not have a job, have
actively searched for work in the past four weeks, and are
currently available for employment (Amadeo, para 1). BLS
uses household surveys known as current population surveys to
measure unemployment. It is a practice that has been conducted
since 1940 when the government was responding to the Great

2. Depression. The survey results help to understand the
unemployment rates for different people in society like youths
and adults.
The unemployment rate among youths refers to the number of
unemployed youths between the ages of 15-24 years when it is
expressed as a percentage of the youth labor force. Figure 1
shows the fluctuating rates of unemployment from October 2018
to October 2019. In the US from April to June 2019, the
unemployment rate rose by 615,000, and this increase was
similar to the rise for the same period in 2018 (Bls.gov para 9).
In July 2019, the number of unemployed youths was 2.1 million.
Thus the government needs to identify causes and solutions to
create employment opportunities such that all the youths
contribute to the growth of the economy.
Figure 1: Monthly Youth (16-24) unemployment rate in the US
from October 2018 to October 2019.
Source: Bureau Labor of Statistics
The graph shows the unemployment rates every month for
youths across the US. It shows seasonally adjusted rates, which
is a statistical approach to remove the seasonal component of a
time series integrated with the analysis of non-seasonal trends.
Overall it helps in understanding the trends in youth
unemployment.
Since the great recession of 2007-2009, there has been a decline
in youth jobs causing many young people to join adulthood
without joining the labor force. Looking back at 1979, the
number of young people who were either working or looking for
work was 69.1%, and in 2014, it dropped to 54.1% (DePillis,

3. para 3). This is an indication that there has been a decline in
labor force participation among young people.
Some factors are contributing to low labor participation that
needs to be addressed. One reason is a barrier to entry in the
labor market because they lack the job-specific experience
required by the employers. When the youths are fresh from
college, some struggle to find jobs because employers are
unwilling to hire inexperienced job seekers. They also cannot
venture into entrepreneurial activities successfully because they
lack business network accessibility (Görlich, Dennis, and
Stepanok 3). Another aspect is that compared to adult workers,
the youths can resign voluntarily because they are willing to
explore numerous opportunities before they settle.
Unemployment arises when they quit their current jobs, and
there is no new job at hand. When resigning their current jobs,
the youths encounter a lower opportunity cost as they are more
likely to have dependents that they need to support, and most
youths also turn to higher education, which is a more viable and
natural option unlike the adults (Görlich, Dennis and Stepanok
4).
Poor macroeconomic performance is a major cause of
unemployment. When an economy is not growing, every person
is affected, but youths are hard-hit because of the super-cyclical
nature of youth unemployment. Cyclical unemployment hits
almost every nation, and it deals with the business cycle of the
economy. It happens when an economy experiences downturns
and contractions and, thus, more job losses (Mawn 15). One
major factor of cyclical unemployment is a deficiency in
demand. Business revenues mainly decline when consumer
demand drops and what results is laying off workers so that
companies can cut costs and maintain their profit margins. This
is also known as demand deficient unemployment because there
is insufficient demand that is needed to generate full
employment, as shown in figure 2 below. Because most youths
are less experienced compared to adult workers, and that
severance pay increases with tenure, it becomes less costly for a

4. company to fire the youths (Görlich, Dennis and Stepanok
4).The US encountered cyclical unemployment in the 2008
financial crisis a time when many subprime mortgage lenders
filed for bankruptcy and construction of homes was halted.
About 2 million people, including the youths who were
employed in the construction sector as home builders lost their
jobs (Amadeo, para 8). Early intervention is needed to prevent
similar instances from occurring in the future and prevent
youths from being laid off.
Figure 2: Demand Deficient Unemployment
As shown in the graph, when demand decreases, it shifts from
AD to AD1. Quantity supplied decreased from Y to Y1. For
companies to maintain profit, when production is low, workers
are laid off.
Structural unemployment is also a major cause of unemployed
youths in the US. It happens when there is a mismatch on the
available jobs and the skills level of the unemployed (Mawn
13). Figure 3 below shows the structural unemployment levels

5. in the US. It is caused by technological advances in industry,
for instance, where unskilled workers are being replaced by
robots. If workers want to continue working in the same
industry, they need to obtain more training in computer
operations (Lumenlearning.com). Another factor is trade
agreements where trade restrictions are lifted. For instance, the
North American Free Trade Agreement resulted in many
companies to relocate to Mexico, leaving former employees
without work (Amadeo, para 6). Other American companies
have, in the past, transferred to countries like China, and this
leaves American youths without jobs.
Figure 3: Structural Unemployment Rate in the US
Source: Organization for Economic Co-operation and
Development
The graph shows the structural unemployment rate by the years
between 2002 and 2015. The figure can indicate the health of
the economy in that some improvement is noticeable at lower
rates in the following years.
Reducing Unemployment Rates
Some solutions can be used to tackle the unemployment
problem. One of the essential solutions is improving the

6. macroeconomic environment through the institution of demand-
side and supply-side policies (Vukovic, Adrijana, and Djokovic
70). The demand-side policies can be used to lower demand
deficient unemployment caused by the recession. Demand-side
policies can include monetary, fiscal, and depreciation of
exchange rate policies. When an economy realizes a recession
and a rise in cyclical unemployment, demand-side policies are
crucial. If unmonitored cyclical unemployment becomes spiral
and uncontrollable, and therefore, there is a need for federal
government intervention to control it (Farmer 567).
Expansionary monetary policy involves cutting the interest
rates, which would lower the cost of borrowing, encouraging
people to spend and invest. As a result, more employment
opportunities will be created, and people can find jobs.
Lowering the interest rates stimulates more demand that helps
in putting the economy back on track (Farmer 568). Companies
can also borrow less, and this gives them enough financial
capital to hire more workers and meet the increasing demand.
When people have money, aggregate demand is increased as
well as the Gross domestic product, and this helps to fix
demand deficient unemployment.
Monetary policies alone are not efficient solely, especially if
the recession is so severe. At this point, the fiscal policies are
needed where the government stimulates the economy by
increasing spending or cutting taxes (Choudhry, Misbah, and
Signorelli 79-80). Fiscal policies lower unemployment because
it aids in increasing the aggregate demand and thus improving
the rate of economic growth, as shown in figure 4. Many
governments like the US have turned to fiscal policy as an
approach to creating new jobs for the youths. Hope is created in
that through extra spending on government projects such as
housing and infrastructure, among other infrastructures that a
positive multiplier effect will be realized on jobs, incomes, and
output. Keynes was an active advocate for the expansionary
fiscal policy when a recession prolonged (Choudhry, Misbah,
and Signorelli 82). He argued that during a recession, labor and

7. capital are idle, and therefore the intervention by the
government is needed to enhance more demand and lower
unemployment. This approach helped in the previous recession,
and it is an effective strategy that can be used in case another
recession is encountered.
Figure 4: The Effect of Higher Aggregate Demand on an
Economy
The figure above shows that increasing aggregate demand
causes a higher real GDP. More outputs cause companies to hire
more workers.
Supply-side policies do not necessarily focus on boosting the
overall aggregate demand and thus deal with more micro-
economic issues. Supply-side policies aim to overcome labor
market imperfections and hence lower the rates of
unemployment caused by the supply-side factors. One of the
policies in education and training, where the unemployed youths
will be given new skills that will enable them to find jobs
(Farmer 560). There are youths in the US who study up to the
high school level, and the federal government has the role of
increasing funding to community colleges since they create a
significant pathway for the employment of many youths in the
country. This is because some youths are unemployed because
they do not have the needed qualifications for a specific job.
Besides government funding in community colleges, the latter
should create policies with employers to ensure that learners
training for the employment demands in the industry. This will
help reduce unemployment rates that arise when the employers
view the youth jobseekers as unskilled and without experience.
Conclusion
Until full employment is reached, unemployment is a problem

8. that needs to be solved to get young people in work before they
enter adulthood. There are a variety of factors that contribute
to youth unemployment, such as structural and cyclical reasons,
and thus with the needed interventions, the state of
unemployment can be lowered. Fiscal and monetary policies
have been often used to solve the unemployment crisis. When
aggregate demand is increased, there will be more productive,
and thus companies can employ more workers to meet the
demand. Also, by funding the community colleges, youths will
develop an improved level of skills that are needed by
employers (Vukovic, Adrijana, and Djokovic 180). Overall, the
solutions offered can help reduce the overall unemployment by
creating more jobs.
Works Cited
Amadeo, Kimberly. Types of Unemployment. 15 05 2019. 20 11
2019 <https://www.thebalance.com/types-of-
unemployment-3305522>.—. Unemployment, Its Causes, and
Its Consequences. 13 11 2019. 29 06 2019
<https://www.thebalance.com/what-is-unemployment-
3306222>.
Choudhry, Tanveer, Enrico Marelli Misbah, and Marcello
Signorelli. "Youth unemployment rate and impact of financial
crises." ." International journal of manpower (2012): 33.1:
76- 95.
DePillis, Lydia. What's going on with youth unemployment. 17
08 2018. 20 11 2019
<https://edition.cnn.com/2018/08/17/us/trump-youth-
unemployment/index.html>.
Farmer, Roger EA. " "How to reduce unemployment: A new

9. policy proposal." ." Journal of Monetary Economics
(2010): 57.5: 557-572.
Görlich et al. "Youth unemployment in Europe and the world:
Causes, consequences, and solutions ." Kiel Policy Brief
(2013): No. 59.
Lumenlearning.com. Boundless Economics: Measuring
Unemployment. 2019. 20 11 2019
<https://courses.lumenlearning.com/boundless-
economics/chapter/measuring- unemployment/>.
Mawn, Lauren, et al. " "Are we failing young people, not in
employment, education or training NEETs)? A systematic
review and meta-analysis of re-engagement
interventions."Systematic reviews (2017): 6.1: 16.
Tradingeconomics.com. Trading in Economics. 2019. 14 11
2019 <https://tradingeconomics.com/united-
states/unemployment-rate>.
Vukovic, et al. "The Necessity of Solving the Youth
Unemployment (Неопходност Решавања Незапослености
Младих)."." Ekonomika, (2015): 61.1: 173-182.
Surname 1
Students Name
Institutional Affiliation

10. Date
Fixing Youth Unemployment
The Bureau Labor of Statistics (BLS) produces a monthly report
concerning
unemployment, and it indicates the state and strength of the
economy.
In October this year,
the unemployment rate increased to 3.6% from 3.5% in the
previous month
(Tradingeconomics.com
para 1
)
.
America has one of the most prolonged economic
recoveries in its history, and despite the continual effort by the
government to c
reate jobs
,
full
employment levels have not been reached. Unemployment has
adverse consequences on the
overall economy, and there is a loss of significant consumer
spending. When unemployment
levels rise, it can be financially destructive to an economy
. Ov
er two million youths are
unemployed, and most have given up having permanent
employment

11. (Bls.gov
para 8
-
9
)
.
Failure to have a stable job in early adulthood can have a
significant impact on the lives of
individuals. Young people complete college, begin
searching for employment, and if they
cannot find, they ultimately give up on being employed.
Constant rejection and the state of the
economy contributes to many unemployed youths in a country.
It is, therefore, important for
an economy to analyze the root
causes of unemployment and fix the problem.
Understanding
Youth
Unemployment
and its Causes
Problem 2Cash flow Direct Method Direct: Preparing statement
of cash flows and supporting noteCash and cash equivalents,
Dec. 31 prior year-end27,000Cash and cash equivalents, Dec. 31
current year-end75,924Cash received as interest2,700Cash paid
for salaries78,300Bonds payable retired by issuing common
stock (no gain or loss on retirement)200,000Cash paid to retire
long-term notes payable135,000Cash received from sale of
equipment66,150Cash received in exchange for six-month note

12. payable27,000Land purchased by issuing long-term note
payable116,000Cash paid for store equipment25,650Cash
dividends paid16,200Cash paid for other expenses43,200Cash
received from customers523,800Cash paid for
inventory272,376Midland CompanyStatement of Cash FlowsFor
Year Ended December 31Cash flows from operating
activitiesReceipts from customersReceipts of interestPayments
for inventoryPayments for salariesPayments for other
expensesNet cash provided by operating activitiesCash flows
from investing activitiesReceipt from sale of equipmentPayment
for store equipmentNet cash provided by investing
activitiesCash flows from financing activitiesPayment to retire
long-term notes payableReceipt from borrowing on six-month
notePayment of cash dividendsNet cash used in financing
activitiesNet increase (decrease) in cash and cash
equivalentsCash and cash equivalents at beginning of yearCash
and cash equivalents at end of yearNoncash investing and
financing activitiesBonds payable retired by issuing common
stockLand purchased by issuing long-term note payable