Unemployment is the other term of joblessness. This term mainly refers to those people who have not job and actively search for it. Therefore, it is significant to calculate the unemployment rate in a particular area. The unemployment rate is calculated mainly by counting the jobless workers and the total number of people related to the labor force in the definite area. Labor force is a term that determines the number of people below retirement age, who are in so-called working age. The people of this category are expected to participate in the work force or actively search for employment. There is the formula to calculate unemployment rate in percentage. It is the following: UR = (UW/TLF)*100, where UR - Unemployment Rate; UW - Unemployment Workers; TLF - Total Labor Force.
From the economics point of view, there are few major types of unemployment. They are: Structural, Seasonal, Frictional, and Cyclical. Structural unemployment arises due to the absence of demand for the workers that are available in particular labor area. Frictional unemployment appears in result of workers' moving between locations, careers, and jobs. Seasonal unemployment mainly depends on changes in the seasonal lack of demand for a particular kind of jobs (Santa Claus Stores in January). However, the structure of the economy differs from month to month. That is why the seasonal unemployment turns out to be a type structural unemployment. Cyclical unemployment occurs in the case the unemployment rate moves in the opposite direction to GDP (gross domestic product). In a case, the GDP rate is low or negative the unemployment rate is high.
The major factors that define Rio Grande Valley's economy are binational job market and its proximity to Mexico. Nowadays, the economy of Rio Grande Valley rapidly increases. However, despite rapid job creation the area remains to be poor. According to statistics data, the unemployment rate has grown an average 4.6 percent from 1997 to 2003. In 1997, the unemployment rate in Rio Grande Valley was above 20%. Constantly increasing population rate makes Rio Grande Valley lead the state of Texas by unemployment rate. The main reason people cannot find job in this area is a skills gap. The labor force pool cannot satisfy the jobs available. However, the lower Rio Grande Valley workforce development area is clearly presented on Image 1. Observing statistical data it is compulsory to underline that unemployment rate has been vibrating during last 15 years. Admittedly, either in 1997 or in 2014 the unemployment rate in RGV reaches high point (see image 1). During last decades, the lowest unemployment rate in RGV occurred in October, 2007. The highest rate of unemployment in RGV took place in January 1997 and June 2011.
The unemployment labor force in RGV includes either young or middle-age people. The lack of knowledge and professional skills create the great problem for jobless people. Majorly, the main reason the unemployment rate is so high is that people of different age do not have equitable education to find job in the work market. The most common type of unemployment in RGV is poor people who have no opportunity to get good education and find qualitative job. Moreover, the universities graduators have few ways out. The first one is to stay in RGV and become a teacher. The second is to get degree. Finally, the third is to leave the city. There are almost no vacancies for engineers, webpage designers, software developers, and database administrators, etc.
To reduce the unemployment rate in Rio Grande Valley, it is compulsory not only create new working places, but educate people, give them particular skills and training programs to make them become pros in the definite job. The other step to decrease unemployment rate is to create a school program that would inform pupils how to create the plan for further education and career realization. The next step relates to the state. It would bring advantages for the area if the government sets up and realizes some privileges for those who apply for a job. It goes without saying that this process turns out to be costly and long term, but sometimes the contribution brings great benefit.
Clark, S., Taylor, J. Rio Grande Valley's unemployment rate drops as workforce shrinks
The Moitor. Web May 23, 2014. http://www.themonitor.com/news/local/rio-grande-valley-s-unemployment-rate-drops-as-workforce-shrinks/article_4ce1fdcc-e2d0-11e3-a667-001a4bcf6878.html.
Lopez, J.J. Dynamic Growth in the Rio Grande Valley. Southwest Economy. 2006. Web March/April, 2006. http://www.dallasfed.org/assets/documents/research/swe/2006/swe0602c.pdf.
Rio Grande Valley LEAD. Labor Market Report. Print. 2012. http://www.google.com.ua/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCMQFjAB&url=http%3A%2F%2Fwww.valleychamber.com%2Fread_file.php%3Fcontent_type%3DPDF%26file_name%3D900.pdf&ei=VsemU6ycDvTP4QSO2oGICA&usg=AFQjCNGId5oe7M0We26_EcgvgXLzF2KfFQ&bvm=bv.69411363,d.bGQ.