Effect of Worldwide Recession on Unemployment

This research examines the effect of the current world-wide recession on the future of unemployment in the United States. A disclaimer needs to be made prior to beginning this analysis. That disclaimer is that no world-wide recession exists in the Spring of 1999. The situation that actually prevails is that many economies around the world are in recession, but many are not in recession. Further, there are areas of regional recession within the global economy (International Monetary Fund, 1999). A notable case in point is East Asia. Certainly, however, a sufficient proportion of the world's economies are current in recession to warrant an assessment of the potential of this situation to affect future employment levels in the United States. The economic problems being confronted by the economies of southeast Asia are especially serious and hold the potential to have an impact on future employment levels in the United States (Son, 1999).

Of all of the economies around the world that are in recession, the Japanese economy has the greatest potential to affect future employment in the United States in a negative way. The Japanese economy is in a state of near crisis in the Spring of 1999, with output falling, the financial sector in disarray, and the government unable to act decisively because of the ability of the political opposition to thwart government plans through its control of the up

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out the trade imbalance between Japan and the United States, the reduction of Japan's trade surplus might seem to be good news for the United States. It is not, however, good news. The Japanese trade surplus has declined because Japanese exports have slowed, not because Japanese imports have increased (Morgan & Pain, 1999). A growth in Japanese imports from the United States would translate into increased levels of employment in the United States. The slowing of Japanese exports to the United States, however, has the potential to affect future employment levels in two ways, each of which is a negative effect. First, many jobs inside of the United States economy are associated with the import, distribution, and sales of products from Japan. Therefore, as Japanese exports to the United States decrease, the number of jobs will decrease involved in the import, distribution, and sales of Japanese products will decrease. Second, as Japanese exports decrease, the number of production and shipping jobs inside the Japanese economy will decrease. As unemployment in Japan rises, the demand for products from the United States will fall, because fewer people in Japan will be able to afford to consume imported products. In turn, as the
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Some common words found in the essay are:
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Approximate Word count = 1713
Approximate Pages = 7 (250 words per page)

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