Causes of Unemployment

It has nothing to do with poor performance in most cases

so settle down and stop beating yourself up

The cause of unemployment can be addressed on two levels: Individual and societal.

Individual causes of unemployment

People get depressed and angry when they become unemployed, especially for long periods of time. You really need to get this nasty emotional monkey off your back and let it run off into the forest where it belongs. The absolute worst thing someone can do is fall victim to a "victim mindset," a feeling of helplessness or worthlessness. I know for a fact that people lose jobs all the time for a variety of reasons that seldom have anything to do with the value they provide as employees. Just a few weeks ago a person whom I respect greatly lost his job after leading his team to the best performance in the company's history by far, this during a recession. You would think that rock-star numbers would inculcate someone against joblessness, but paradoxically that is often not the case. Quite often, people lose jobs because they are too good at what they do and thus threaten the people above them in some way.

Sometimes jobs are shed because companies perform poorly. You have no control over the whims of the economy. Again, don't beat yourself up over it. Move forward. Take honest stock of the past to see what you could have done better, but move forward ALWAYS.

Sometimes people can't find new jobs because their skills sets are too narrow or too broad, and the market demand just isn't there. In my case, I have had problems because my set of skills is very broad, and my employment history shows it. Never mind that I have been quite successful in a number of realms. HR departments want to see people who have done the same job for years, mastered it, and not been bored or curious enough to move on to the next thing. I know other people who have very specific skills who can't find jobs because their skills are just not in demand right now. You could be the best merchandiser and retail space planner in the world, but -- guess what -- if you don't have a job right now, Macy's probably isn't hiring. Nor is anyone else in the retail world.

So chalk it up to fate. Whatever you do, stop beating yourself up if you are in that mode. That won't help you to navigate your path intelligently.

The societal cause of unemployment

We're all feeling this these days, whether we are employed or not.

People who are employed often report being "overemployed," at least that's what I'm hearing. Because companies and governments have stripped their workforces to the bare bones, the survivors are left doing three jobs. Even those poor overworked souls are constantly looking over their shoulders, waiting for the next round of layoffs. It sucks.

What causes the labor market to seize up like this? I have been thinking about this a lot lately, almost obsessively. It's not as if work doesn't need to be done. When I travel outside New York, I'm shocked at how run-down things have become. Even in New York, we're seeing a lot of vacant storefronts. Clearly, there is a lot of work to be done everywhere.

The root problem is that money is not circulating. As wealth has flowed upward over the past 15 years, it has stagnated in a fetid pool at the very top of the socioeconomic pyramid. When money is not circulating among ordinary people, less work gets done, less wealth is created, and unemployment becomes the social problem that it has become. Rich people only need so many gardeners. They can only buy so many yachts. If one percent of the population holds 90 percent of the wealth, capital can't circulate vigorously, and wealth is not created.

Solution? Wealth re-distribution. Yeah, I just said that. We need to tax the wealthy or force them to spend and invest more of their money. That notion will not be popular with some readers (the dumb ones), but that's the way it is. We need to get the money flowing, and it won't flow if it's all in the hands of 493 billionaires while the rest of us scramble for crumbs.

That's what I think, and I'm pretty sure that I'm right on this one.

Anyway, stop feeling sorry for yourself. Understand the causes of unemployment, and get moving. Who's with me!

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Comments

" I am not rich by anymeans",

" I am not rich by anymeans", as a matter of fact I am currently unemployed. But I have a few questions for you, Do you really think we should only blame rich people for the way things are today? How would you feel if you were to become rich tomorrow by working your ass off, and people started to tell you what you should do with your money? Like they should tax you more, and force you to spend your money. Don't you think we should stop playing the blaming game and start looking for real solutions? I think we all in this shit together, rich or poor; and sooner or later if we don't start seriously dealing with the current issues we will be in deeper shit. Excuse my French!

chuck's picture

You didn't read very carefully

I didn't blame the rich (and let's just define that as a net worth of eight figures or higher and/or an annual income of seven figures or higher). If anything, I blamed the poor, people like you whose own ignorance causes them to work against their own class interest. If you're not rich, you should be f*cking pissed off right now because you're getting hosed on everything from your pension to your health care to your taxes. You're getting hosed by the rich -- people who have never worked a real day in their lives -- because you let them sell you this pipe dream that they're better than you and have "earned" their money and thus shouldn't have to contribute back to society -- or to you, the worker -- in any way. You've let them sell you the pipe dream that you might one day be rich. To wit:

How would you feel if you were to become rich tomorrow by working your ass off, and people started to tell you what you should do with your money?

The last thing I'm worried about right now is getting rich and having to pay more in taxes. I can't even find a f*cking job. Why should I give f*ck one about the rich having to pay taxes! Boo hoo for them. But that's the bullshit line they tell you -- "Someday you might be rich, and you won't want to pay taxes just like we don't." Turn off Fox News and smell the coffee. Unless you've got at least $20 mil in the bank and a salary of a mil, you ain't rich. You're a working sucker like me and probably always will be.

What about the working man and woman, huh? What about the small business person who is creating wealth and struggling to pay the bills? That's always gonna be most of us, and don't we deserve a little something? Guess what? We're not gonna get it if we keep letting all the wealth in this country flow to the l*zy, greedy, clueless f*ckers like the bankers who caused this mess, Sam Walton's kids, Bill Gates and his crappy monopoly software, and scam artist health insurance executives. Of course, your politicians are taking money from all these people, which is why we never see any change, except the kind that puts more of the working man's dollars in the rich man's pockets.

Why should Sam Walton's grandchildren pay 15 percent (capital gains) on their un-earned income when you and I pay almost double that on our hard-earned income? If you're not pissed off, you're either ignorant or very, very stupid because you are literally being robbed blind by these people who are selling you a pipe dream about how "If you get rich, you shouldn't have to pay taxes" so that you'll support a TOTALLY UNFAIR system in which they don't pay their fair share and the rest of us get hosed on everything from our health insurance to our pensions to our vacation time to our taxes.

If you're really "not rich by any means" and unemployed, I implore you to consider joining your own class and stop being willingly brainwashed and robbed blind by these a$$holes. I care more that the working man can take a vacation, can retire, can go to a doctor, gets his money's worth out of his taxes than I will EVER care about rich, lazy a$$holes who wouldn't know a real day's work if it punched them in the nose.

If I got rich tomorrow, I would happily pay a far greater share of my income than the rich currently pay. If I made a million dollars this year, I would gladly pay half of it in taxes. I'd still be way ahead of where I am now, and society as a whole would be better off.

When life hands you sh*t, make fertilizer.

chuck's picture

By the way, I don't hate the rich

I hate the very rich, the George W. Bushes of this world who were "born on third base and think they hit a triple."

I'm for lower taxes on earned income (up to, say a half mil' a year, then going up because you can damn well afford it and society needs it more than you do) and higher taxes on un-earned income (like inheritance and capital gains).

Some rich people seem pretty cool. Even Bill Gates has his good points.

If I were rich, I would hold exactly the same opinions. We have to think about the good of our society as a whole. Like you said,

I think we all in this shit together, rich or poor; and sooner or later if we don't start seriously dealing with the current issues we will be in deeper shit.

Yeah, if it keeps going like it's going, nobody will lose more than the rich. That's why if I were rich, the last thing I would be calling for is lower taxes. Paying a few bucks more in taxes is preferable to ending up with your head on a pike, which is historically where the heads of the rich end up when things get so corrupt and socially unjust.

When life hands you sh*t, make fertilizer.

Stop being hard on yourself

Stop being hard on yourself and look forward to getting a chance soon... this is what is to be done in a bad situation.
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As matter of fact , you're

As matter of fact , you're told what to do with your money , even if you're not rich , with Taxes , tolls , licenses, banking laws , so why all the empathy for the rich ?
Besides it wasn't the farmer in Iowa who designed all the get rich banking schemes , it was Goldman Sachs con men with collaboration from politicians .
" we are all in it together " are you out of your mind , no we're not . For your over concern about the rich , you are extremely naive and gullible , the average American is trying to pay bills , drowning in debt and struggling to put food on the table , has what in common ,with a guy who has to sell one of his BMWs .

chuck's picture

Couldn't have said it better

That's exactly it. I'm so tired of people saying, "Well, what if you got rich? Wouldn't you want low taxes?"

It's like, ugh!

When life hands you sh*t, make fertilizer.

HR departments

"HR departments want to see people who have done the same stupid job for years, mastered it, and not been bored or curious enough to move on to the next thing." This is SO TRUE.

In my 30-years of working, I have had jobs in different industries ranging from retail to banking to legal services, giving me a broad range of skills. Yet the questions I get asked most often have to do with why I have moved around so much. I was at one job for 9 years and another for 5, but they tend to look at the recent ones that only lasted a year or two, due to market conditions beyond my control. BTW, I have read that the average job nowadays only lasts 2 years.

HR departments are frequently living in the past. It is much better to make contact with the company outside of HR, if possible.

chuck's picture

You and I would get along

It's funny how those of us with broad sets of skills get discriminated against -- and that's exactly what it is, make no mistake.

When life hands you sh*t, make fertilizer.

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