The main cause of unemployment can be attributed to the recession. The term recession refers to the backward movement of the economy over a long period. People only spend when they have to. (Nagle 2009). If people spent less there would be less money in circulation, so businesses would suffer financially and people would suffer too. This is because the recession reduces the tax bases of companies, forcing them to reduce their workforce through layoffs. These companies lay off their employees to reduce the costs incurred in terms of wages and salaries. However, this move is not always wise because when a business has fewer employees it would reduce its productivity, which would mean more financial problems. . It also puts a strain on the workforce. If these companies continue to suffer losses, they eventually close and, as a result, the workforce loses jobs. This is what has been happening since December 2007. Unemployment is one of the biggest problems governments face. (Compston 2002). The end of the year 2007 marked the beginning of the great recession. At the start of the recession about 4.9% of the population had no job. Over the years, the increase in youth unemployment has continued to increase. By the end of 2008, the worst impacts of the recession were evident. During that year, approximately 2.6 million people were left without work. This was recorded as the worst-hit year in more than 60 years. By the end of 2008, more than half a million jobs had been lost. In 2009 the unemployment rate rose to 7%. Last year the rate had grown to 9.8%. Nevada was the best state financially. However, the unemployment rate currently stands at 14%. By 2010 there were about six… middle of the paper… range of options available. Instead of looking for work in other companies, you should consider self-employment. You can never miss something constructive and financially profitable if you look hard enough. Saving can also help during rainy days. Recessions would always be present. What matters is how governments, businesses and citizens are best prepared. Works Cited Compston Hugh. 2002. The New Politics of Unemployment: Radical Policy Initiatives in Western Europe. Routledge.Heide Shierholz. April 2, 2010. www.epi.org/publications/entry/jobs_picture_20100402/Nagle M. Jeanne. 2009. How a recession works. The Rosen Publishing Group. Periton Paul, Adams Steve. 2007. Foundations of the Business Administration CIM Learning System. Butterworth-Heinemann.Webster O. yehudi. 1993. The racialization of America. Palgrave Macmillan.