Bakersfield is among the areas in the country with the highest rates of unemployment. In 2010, the unemployment rates reached fifteen percent. At the moment, the rate of unemployment has gone down to about seven percent, which may be considered a significant improvement. However, this is still quite higher, considering that it is higher than the states and the national average. Solutions such as monetary policy, unemployment benefits, and mass transit can help to lower the rate of unemployment in Bakersfield further. A rampant solution such as the expansion of mass transit throughout Bakersfield may be most appropriate as it will immediately create jobs and also spark up businesses.
Unemployment in Bakersfield California
At the moment, the unemployment rate in Bakersfield, California, stands at 7.4 percent. While this fairly good considering that it has significantly decreased from its record high in 2010 when it hit fifteen percent, it is still quite high as compared to other cities, regions, and the country’s average. The average unemployment rate for the state of California stands at about four percent, while that of the whole country stands at 3.5 percent (U.S. Bureau of Labor Statistics,2020). This suggests that there still is a big problem when it comes to the issue of unemployment in Bakersfield. Proper solutions are thus necessary to mitigate the issue, provide the most vulnerable populations with employment alternatives, and further reduce the rate of unemployment in the area. The most logical solution to unemployment in any part of the world is to create more jobs. But creating jobs is not as simple as it sounds. Some of the alternative solutions for the problem of unemployment in Bakersfield include monetary policy, unemployment benefits, and mass transit.
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Solutions for Unemployment in Bakersfield
Monetary Policy . One of the possible ways by which the government may solve the problems of unemployment in places with high unemployment rates such as Bakersfield is through an expansionary monetary policy. This initiative is quick and highly effective. Through the initiative, the government would significantly lower interest rates such that many people will find it quite easy to borrow money to start their businesses or complete their projects (Amadeu, 2020). Those with struggling businesses will also be able to borrow money to help build the business and employ more staff. Individuals can also take up loans to purchase cars with which they can start businesses such as taxi business. An application of the monetary policy in Bakersfield may open up avenues for more people to access capital and start businesses, and thus reduce the rates of unemployment in the area.
Unemployment Benefits . Unemployment benefits have been found to facilitate the creation of millions of jobs. Low-income earners and the jobless normally spend all the money they have on their basic needs. They are thus the ones who grow the economy as they release back the money to the economy. In places with high unemployment rates, the spending power of the people is significantly reduced. Giving people unemployment benefits gives them the opportunity to spend, thereby creating a ripple effect on expenditure and business operations. Many businesses will get to grow and employ more workers as spending is facilitated among the unemployed. Offering unemployment benefits may also work as the injection required for a person to come up with a business and set out to build it.
Mass Transit . Bakersfield already has mass transportation systems, mostly operated by the Golden Empire Transit. Most parts in Bakersfield, such as the rural areas, are, however, in lack of mass transportation systems. Creating mass transit systems offers a lot of employment opportunities for the public (Amadeu, 2020). People can get employed during the process of construction, as drivers, security personnel, among other professions. Millions of construction jobs, for instance, can be created in rail construction and road construction and expansion.
Recommended Solution
Among the above solution, the creation of mass transit presents as the most appropriate solution in the case of Bakersfield. Most of the rural areas lack mass transportation systems. The creation of such mass transit systems would, therefore, prove quite beneficial to the people of Bakersfield. Monetary policy and unemployment benefits may not work for the case of Bakersfield. A lot of people may still not be able to get loans for reasons such as huge debts and unpaid loans. Unemployment benefits may also not work to get a significant number of people employed.
Measuring Effectiveness
Mass transit system requires construction work and a workforce that is mostly made up of the locals. It, therefore, ensures that a good number of unemployed locals get jobs, even if it is temporarily. A lot of people would get employed in construction works and on the buses and trains. Opening up the rural areas would also spark business opportunities, which would also increase the rates of employment in the area.
Conclusion
Unemployment is a huge societal problem as it creates and facilitates other major problems such as poverty, lack of education, and crime. The rate of unemployment in Bakersfield is alarming, given that it is higher than the state and the national rates of unemployment. Solutions such as monetary policy, unemployment benefits, and mass transit, as discussed above, may work to help reduce the rates. Expanding mass transportation throughout Bakersfield, however, stands out as the most appropriate solution for the area, given its substantial economic potential. This project has expanded my knowledge on the issue of unemployment and how it can be mitigated.
References
Amadeu, K. (2020). Unemployment Solutions and What’s Most Cost-effective . The best way to solve high unemployment according to research. The Balance.https://www.thebalance.com/unemployment-solutions-3306211
U.S. Bureau of Labor Statistics. (April 14, 2020). Unemployment Rate in Bakersfield, CA (MSA) [BAKE506URN], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BAKE506URN,
