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This Essay Discusses The Rising Unemployment in the U.S

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The U.S. has been experiencing a rise in the rates of unemployment in recent years. Reports indicate that the primary contributor to this problem is the exponential increase in offshoring activities within the country. Broadly speaking, offshoring refers to practices where a company relocates its operation to a foreign country (Levine, 2012). Today, many firms are basing their operations overseas so that they can explore on affordable labor, availability of resources, and favorable taxes among others. However, research has demonstrated that when firms move to foreign countries, the employment opportunities created in their parent countries will decline.

Apparently, this has been the case in the U.S. Companies such as Ford motor company relocated its operations to other states such as Mexico. As a result, the employment opportunities in the U.S have declined significantly (Levine, 2012). In order to address this problem, the U.S needs to establish strict policies that limit offshoring activities. For instance, the Trump administration proposes that the U.S. should withdraw from the NAFTA agreement.

Notably, the NAFTA agreement allows free trade between the U.S. Mexico and Canada. As such, the agreement gave companies the liberty to locate their premises anywhere within these states (Carlsen, 2013). Withdrawing from the NAFTA agreement as suggested by President Trump might have a devastating effect in the U.S since these three countries are interdependent. Thus, the best approach would be to set policies that would shoulder local companies with a social responsibility of ensuring that they create jobs for the U.S. citizens.

In conclusion, unemployment is a serious problem facing the U.S. now. The issue is primarily caused by an increase in offshoring activities in this state. Offshoring is beneficial to industries but tends to harm a countries economy. A rise in unemployment implies that citizens are deprived a chance to improve their living standards. Therefore, the state needs to develop laws that restrict offshoring activities.


Carlsen, L. (2013). Under Nafta, Mexico Suffered, and the United States felt its pain. The New York Times. Retrieved from

Levine, L. (2012). Offshoring (or offshore outsourcing) and job loss among US workers. Washington, DC: Congressional Research Service.

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