Stated by Bur (2010), one of the main reasons why the jobless rate in the US is still high is that the demand for hiring employees is significantly decreased in recent years. In the other words, more and more American companies are mainly focusing on increasing manufacturing and developing information technology in order to improve worker productivity instead of growing up more employees. Besides, a lot of workers, who are working at these businesses, claimed that such companies did not want to rehire their employees after deep cuts in their workforces even though their business began recovering. This made current employees do more work with unchanged salary.
Moreover, Bizymoms (2008) highlighted that due to automating production facilities and encouraging multitasking, many companies in the US started replacing their employees by modern machines and prefer letting only one worker complete some jobs at the same time, which are finished by several individuals in the past, causing less employees to be hired and the unemployment rate to become higher.
Another reason for lacking jobs in the US market is the stagnant labor caused by immigration of US companies to other nations. Based on Bur (2010), a number of American companies started to widen their operation by setting up manufacturing plants outside the US. For instance, US companies like Apple, General Motor had their own factories in Asian regions and created many jobs in this area as well. This not only took more jobs out of the US but also increased the huge amounts of jobless. The reasons for that immigration were that the costs of labor and production in Asia are lower than in the US. For example, the total costs of an Apple mobile phone produced in China were just close to 179 USD compared with over 337 USD in the US. So far, this company had to pay $21 per hour for hiring the US employees while they just spend $7.1 eight-hour hiring employees in China (Chakrabortty, 2012).
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