US jobless rate stays above 8% for 43rd straight month: Survey – The Straits Times Sept 03, 2012
Introduction:
This article discusses the unemployment rate in US. The unemployment rate has exceeded 8 per cent since February 2009. Payroll gains slowed from an average 226,000 in the first quarter to 73,000 in the April to June period, before picking up July. Including the July advance, it has taken the US three years to recover about half of the 8.8 million jobs lost as a result of the 18-month recession ended in June 2009.

Additionally in September, 2012, there are about 6.5 million people that are job losers and persons who completed temporary jobs according to U.S. Bureau of Labor Statistics. This unemployment number is an imperfect measure because it excludes both marginally attached workers and part-time workers who want full-time jobs.

The two economic issues we would cover in this paper are: 1) Lost Incomes and Production; 2) Structural Unemployment.

Discussion: 1) The Lost Incomes & Production
• Basically, unemployment creates personal hardships due to loss of opportunity of earning income. The loss of income results in less consumption and a lower living standard. While this problem applies to any resource, it is most important for labor. The owners of capital, land, and entrepreneurship can often earn income from more than one resource. Thus a loss of income from one resource is not a total loss of income. Many workers, however, often earn income only from labor. The loss of income from labor might mean a total loss of income which is devastating.
• The Lost Income: Employment benefits create a safety net but cannot fully replace lost wages, and not everyone receives benefits. Lost incomes also will cause loss of consumption to household. The unemployment also will create huge stress because not being able to maintain their normal