With many of today’s companies looking for ways to save money and increase profits we are seeing an increase in the number of unemployed. Companies are looking to cut costs and employees are a major expense for a company. Not only does a company have to pay the wages of a worker, but the company must also match the Social Security and Medicare payments.
Another expense of employers is medical insurance; even if the companies have its employees contribute to the cost of their benefits, it still does not offset much of what the company still pays.
With the increasing costs to a company they are looking at moving jobs to countries where it’s able to pay workers a lower wage. An example of this would be an American company moving it manufacturing facilities to Mexico.
Another reason would be the use of labor saving automated equipment. Co
mpanies are using more computers and robotics instead of human labor. By automating more of their operations companies are increasing productivity and profits but at the same time they are contributing to the rise in unemployment.
The labor force is recovering slowly from the recent recession, but the jobs that are being created are mostly in retail and positions through temporary employment agencies.
Not all unemployment is created by companies cutting jobs; there are other factors that play into the unemployment rate. Some people lose their jobs and search for another job. Some leave their jobs willingly to seek other opportunities. Others are new workers entering or reentering the work force and others leave the work force willingly and do not return.
The social implications of unemployment to a community vary from individual to individual.
Example Essays Home
