Type: Economics
Pages: 3 | Words: 612
Reading Time: 3 Minutes

After a period of recession characterized by massive unemployment and slow economic growth, the USA has been struggling to recover by creating more job opportunities and urging investors to invest in the country following the recent increase in employment that depicts economic growth. In order to achieve a steady economic growth rate, the unemployment rate had to be reduced to increase the purchasing power of most citizens hence improving their living standards and the country’s gross domestic product.

Increase in Employment

The winter season saw an increase in employment while economists believe that the rate will reduce since the gaps filled during the winter represented those employees that were sacked during the recession and after filling these gaps, there would be no space to accommodate other employees during the spring. In addition to this, those companies that hired employees during the winter will recruit fewer or no employees during the spring.

The projection that the economy will maintain a steady growth rate of between 2% to 2.5% and a monthly increase in employment of roughly 175000 each month does not guarantee the reduction of the unemployment level of 8.2% since this rate is too low. The level of unemployment, therefore, influences the growth of an economy.

The level of employment among the citizens influences economic growth. A country that has high levels of unemployment will have a poor economy. This is because the unemployed are dependent on the employed. They have a low buying capacity, which leads to poor living standards. The investment level in these countries is low since those who are employed can save or invest less.

Countries with high employment levels experience a faster growth rate since their buying capacities and investment levels are high. This is evident by the projection of economists that the USA needs a monthly increase of 250,000 jobs in order to influence economic growth.

Peaks and Recessions

Seasonal changes adversely affect economic growth in most European countries, which experience seasonal changes. These changes create both seasonal and frictional unemployment. Koehler (2008) asserts that seasonal changes divide economic systems into peaks and recessions. During the peak seasons such as the winter, many people are employed to improve the country’s GDP. During the recession, the rate of unemployment reduces lowering economic development.

For instance, mild winter enhanced increased employment from December to March. Frictional unemployment refers to the unemployment period between losing a job and getting another job. As most people lose their jobs during a recession, they will remain unemployed for some period before they secure another job. This period of unemployment is characterized by a decrease in economic development.

In order to increase jobs during periods of recession, the Government should increase its expenditure on the citizens. These expenditures include the construction of roads and other development projects. This will provide employment opportunities for the youths and improve their buying capacities hence increasing tax revenue to the Government.

The Government should also introduce highly adaptive crops or genetically modified products especially for farmers so that they are not unemployed during the cold seasons. Genetically modified products will mature within a short period. This will provide income to farmers during the summer season and revenue to the Government. In this case, there would be fewer effects on economic growth due to seasonal changes.


In conclusion, most of the developed countries experience rapid economic development due to better disaster management strategies and high employment levels. These disaster management strategies cushion the country against the adverse effects of calamities such as droughts and famine. Developing countries have slow economic growth due to poor disaster management strategies. When these calamities occur, there is a massive loss of property and many people are rendered jobless. This slows down economic development.

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