Is recession really on downturn?
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August 31, 2009 • written by Margaret Cross
Filed under News, Uncategorized
The recession in America may have hit its workers hard, but experts believe that the recession may be drawing to a close. The public does not agree.
What caused the recession in the first place? Where did America go wrong?
The National Bureau of Economic Research said that “the deterioration of the labor market throughout 2008 was one reason why NBER decided to state the recession began” in 2007. How many jobs did businesses cut? From January 2008 to October 2008, employers got rid of 1.2 million positions, and the number has only increased since then.
As a result, America is beginning to feel the pinch now more than ever. According to the Cable News Network, the unemployment rate has risen to 9.3 percent, affecting teens as well as adults. Teens may even possibly have it worse, seeing as they are entry-level workers.
“I worked at a daycare for about two and a half years,” senior Meghan Hawkins said. “I actually got laid off my first year into it, but they brought me back in as a substitute. I would say about five other people got laid off, and they were the same age as me.”
Teen unemployment is not the only problem. Workers with families to support have had to make recent sacrifices, as well, such as switching from private schools to public schools. In fact, five or six former private school students now attend Bartlett High.
“That’s not very many when you consider 1450 students, but any family that something like that happens to is significant,” vice principal Jane Gatewood said. “Every [public] school has had some [private] students enrolled as a result of the economy.”
Students have also had to cut back on some of their excess spending.
“You don’t have nearly as many students driving by themselves to school,” Gatewood said. “Another thing they gave up is buying tickets and T-shirts.”
This puts the sports teams and Pep Crew at a disadvantage. They all rely heavily on income generated by ticket revenue and the money generated from selling spirit wear.
Students and school organizations alike are suffering from the state of the economy. Whether this recession will truly end soon remains to be seen. However, hope remains high that at least some form of relief is on the way.
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In my opinion, the majority of decline has to be put on the new minimum wage. The increase in the wage means small businesses, which teenagers are a commonplace, have to raise up there prices to support the wages which means cutting people, which so happens to be the teenagers. I am unfortunately not hired at the moment but my chances look very slim due to the current economic status. For teens that are hired, this minimum wage seems like they are rolling on gravy train in biscuit wheels. Trying to get a teen hired while Obama is in office is like fighting an up hill battle in my opinion.