Unemployment rate for teen-agers is changed to 21.6%, for Asians it is 6.9%.
Number of long term unemployed (unemployed for 27 or more weeks) increased by 270,000 to 2.9 million. (Bureau of Labor and Statistics 2009)
However, participation of civilian labor force was almost unchanged at 65.6%.
Number of part time workers (who work for economic reasons) risen by 787,000 to reach 8.6 million. Increase in these workers is almost 3.7 million during the past 12 month time. These people are intended to work but cannot work either of hours cutting or they are not able to find full time job.
Almost 2.1 million people (not adjusted seasonally) were attached somehow to labor force in February, figures for these workers were 466,000 a year earlier. These people do want to work and put their efforts to find a job too in last 12 months. However, these workers are not counted as unemployed as they did not try to find out some job in last four weeks.
Among these workers there are 731,000 workers who are discouraged, they think jobs are not available in the market and it is useless to even search. (Bureau of Labor and Statistics 2009)
In February 2009 total non-farm employees on pay-roll dropped by 651,000. we know the recession started from December 2007, almost 4.4 million jobs has been lost, it is also to mention half of these jobs are lost in last 4 months. Employment is declined in almost the majors industries like business, housing, services, construction etc. (Bureau of Labor and Statistics 2009)
Unemployment in business and professional services increased by 180,000 in February. Jobs loss in Temporary help industry is 78,000 in past few months. However, since this financial slump temporary help industry loses 686,000 jobs which are almost 27%.
Trend of job loss was also observed in building industry, construction, engineering services by 1700, 16000 and 12000 respectively. (Bureau of Labor and Statistics 2009)
Job loss in construction industry is 104,000 in February. It has been observed that unemployment in the industry rose by 1.1 million in last 2 years. However, major loss of jobs is observed in last four months. (Bureau of Labor and Statistics 2009)
Unemployment in truck transportation sector is rose by 33,000 in February. Jobs lost in the industry have been 138,000 since the recession. However, last four months were the worst caused 88,000 job lost. (Bureau of Labor and Statistics 2009)
Information industry also continued to face the job loss by 15000.
Long debates and news has been there in financial sector in last few months. Financial activities industry lost 44,000 jobs. 448,000 jobs have been lost in total in last three years. Major part of this loss happened in last few months. (Bureau of Labor and Statistics 2009)
Unemployment Insurance in USA
"Unemployment Insurance is a program—established under Federal and State law—for income maintenance during periods of involuntary unemployment due to lack of work, which provides partial compensation for wage loss as a matter of right, with dignity and dispatch, to eligible individuals. It helps to maintain purchasing power and to stabilize the economy. It helps to prevent the dispersal of he employers’ trained work force, the sacrifice of skills and the breakdown of labor standards during temporary unemployment." (Quoted from a description of the Unemployment Insurance by the Department of Labor in 1955—see: )
According to above quotation, American Unemployment Insurance (UI) System do help unemployed worker but for short period of time. It is to support the worker during his search for new job. The purpose of this system is to preserve the dignity of worker, along with making sure that his life standard is not moving down. However, the ultimate benefit of the system is that it supports economy to move smoothly. (Christopher Ruhm 2000)
After that, it is due responsibility of worker to keep seeking the job until he find. UI system is just to support the unemployed for short term, in the long run an unemployed can go to social security plan however. It can be said in US there is not any king of unemployment benefit it is just short term benefit. But in the current conditions it would be very hard for the workers to sustain in long run due to the non-availability of jobs. The help unemployed worker get under UI system is related to their past earning capacities. (Robert 1993)
Social Security Act, is the other way to get help in the long run but again there must be large numbers of unemployed workers and sort of economical crisis in the country to extend the duration of social security help. It has been observed that the people surviving under UI and Social Security Plans are forced to join substandard jobs at time. (Christopher Ruhm 2000)
These are the two programs to support unemployed worker and to maintain the standard of living which ultimately in turn to smooth economic operations. (Historical Comparability 2006)
Unemployment in Hong Kong
As we know the world is facing recession. Almost every sector of each economy is facing a worse slum. Companies are intended to cut their cost to better respond and to survive from the recession. In doing so they are firing employees which are not more needed.
This in turn creates much problem both economically and socially. In this context along with all economies Hong Kong is also facing increase in unemployment ratio.
According to census and Statistics department Hong Kong, unemployment rate climbs up to 5%. It is an alarming situation to government and economy. Earlier in 2003, Hong Kong had the worst situation in 2003 when its unemployment rate climbed up to 8.3%.
Three months back Hong Kong’s unemployment rate was 4.6%. As noted in USA case last three months was bad for people at work.
According to Matthew Cheung, Secretary for Labor and Welfare, he expected Matthew Cheung, Secretary for Labor and Welfare, he said, it was expected unemployment rate to rise even further, and that the tough times for the labor market is not over yet. (Unemployment rate in Hong Kong climbs to 5.0%)
The figures for unemployment rate are worse in last 34 months. However, during February the figures were almost stable. Major sectors affected the recession are restaurants, building and construction, services, imports and exports. According to census and Statistics department Hong Kong, total number of job loss increased by 17500 from 3.53 million to 3.51 million during the recession period. Census and Statistics department Hong Kong also said, that the labor force is decreased by 3,200 i.e. from 3.69 million to 3.68 million. Considering this, the number of unemployed workers increases by 14,200 from 157,700 to 171,900. As we see, labor market in Hong Kong is much affected the economic recession. However, government of Hong Kong is trying to put up a plan to help workers who lost their jobs and striving to search new one. This plan would help them financially to meet their expenses while searching for the job. (Unemployment rate in Hong Kong climbs to 5.0%)
Unemployment Related Assistance System of Hong Kong
Hong Kong does not have unemployment support system. Hong Kong has reason for it, according to administration unemployed needs a job not financial support. However, if an unemployed person finds it hard to seek the job and in need of some financial assistance too, he can get help by Comprehensive Social Security Assistance program. The assistance offered by this program is based on standards already made. The maximum and minimum standards under this program are $1965 and $1290 respectively. However, a family registered with CSSA can receive up to $9450 per month. It is to cover household expenses, rent, child school fee and daily expenses. The procedure to get this assistance is of one month. However, in urgent cases cash assistance can also be made same day the application received. There is no limitation of time, one can carry on assistance in long run too. (Christopher Ruhm 2000)
Unemployment Related Assistance USA vs. Hong Kong
Similarities
Both countries are offering their unemployed workers an assistance plan.
One must be a resident of the country he is asking for assistance.
Both countries provide assistance to make living easier for unemployed.
An applicant must be the contributing member to claim the assistance.
Both countries intended to provide social acceptance to their unemployed workers.
Condition for applying through assistance are required that person should be searching for a job actively.
Hong Kong offer self-reliance scheme to their unemployed workers
To regain job, as like USA do.
Differences
USA offer its assistance to unemployed for short run only, however, Hong Kong assist its unemployed as long as he needed.
USA do not offer any assistance to its unemployed in terms of training courses, however, Hong Kong offer its unemployed worker to get into a re-training course to make his skills updated to find it easy towards new job. Hong Kong has 52 bodies for this sort of training courses, re-trained unemployed however, can receive up to $4000/month as training allowance. (Schweickart 2002, p.97)
Under CSSA scheme a person whose income is not up to the level can also apply for the assistance to receive some extra amount in order to maintain specific standard of life. USA on the other does not offer this type of benefit.
Labor Department of USA has set some standard per hour wage rates, in order to make sure workers are earning to maintain standard specific standard of living and thus are not being exploited. However, Hong Kong is not very strict to per hour wage rate.
UI system has a drawback as unemployed getting assistance under this program is forced to accept low level jobs. It is also because UI supports for short term and one has to accept job whatever the offer is. Contradictory to UI, CSSA scheme provide long term aligned with training facilities make it possible for an unemployed to get better job. (Schweickart 2002, p.99)
Gosta Esping-Andersen Theoratical Framwork
Gosta Esping-Andersen is a Danish sociologist and the author of many books on the subject but his primary focus has been on the welfare state and its place in capitalist economies. In his book “The Three Worlds of Welfare Capitalism”, which was published in 1990, he laid out three main types of welfare states, namely:
- Social Democratic. (USA)
- Liberal (Hong Kong)
- Conservative (Germany)
According to Andersen’s model USA is a social democratic country. It is because they promote democracy and make people strive better in their lives. As discussed earlier the unemployment insurance system is the one way to know that USA believes in social welfare of people. On the other hand Hong Kong is in liberal welfare stage. Andersen’s model tends to commodities the workers. It is clear contradiction when the model about mobilization. On one side this model is pretending to create social equality, but in reality it has deepen the roots of class system. (Esping-Andersen 1999, p.)
Unemployment assistance programs offered in USA and Hong Kong are to facilitate the workers who need assistance to meet their daily expenses. But it has been seen that they are being exploited in USA, this is a clear contradiction even government is trying to help those people out. What are the other forces which make workers to be exploited? There are many contradictions in theory and practical. (Esping-Andersen 1999, p.) That is why we are not been able to solve the problems generally prevailing in the society, even after the decades of discussion to find the one best theory. Both USA and Hong Kong tried to come up with the eternal solutions for their people but yet to eliminate poverty, unemployment, class system. We are living in the era of social dualism, people pretend to be interested in others problem but they actually are not. Andersen’s model can not be implemented to get the desired results.
Globalization and Unemployment
Globalization is a concept of no boundaries. Globalization is topic of immense debate in last decade. Globalization do has its impact on unemployment. Globalization affects more on structural unemployment. Due to globalization companies open themselves to different places even across the border for cost cutting and hence caused structural unemployment. This is how globalization impact through the recession period (Robert 1993). Many multinational companies already moved their production units from USA to India and china.
Hong Kong and USA both are facing unemployment problems as like almost every country now s day. Growth rates are almost zero and even negative in some economies and it is not possible to predict the future time frame for recovery. Government across the world should collaborate to come up with the solution.
(Total words = 2630)
References
Bureau of Labor and Statistics, USA, Press Release for Unemployment Rate for the Month of February, 2009. Accessed on March 26, 2009. Accessed from:
Christopher Ruhm, "Are Recessions Good for Your Health?", Quarterly Journal of Economics 2000, 115(2): 617-650.
Esping-Andersen, Gosta 1999, Social Foundations of Post-industrial Economies, Oxford University Press, USA.
"Historical Comparability" (2006). Employment and Earnings. Household Data Explanatory Notes, February 2006. Accessed on March 26, 2009. Accessed From: .
Robert Struble, Jr., International Journal of Social Economics 20, no. 11 (1993): 15-26. Also seen in Treatise on Twelve Lights, (2007-08 ed.), chapter 8,
Schweickart, David (2002). After Capitalism, Rowman & Littlefield Publishers, Inc.
Unemployment rate in Hong Kong climbs to 5.0%. Accessed on March 26, 2009. Accessed From:
http://news.xinhuanet.com/english/2009-03/17/content_11027248.htm
