The main cause of unemployment can be attributed to the recession. The term recession refers to the decline of the economy over a long period of time. People only spend when they have to. (Nagle 2009). If people spent less, there would be less money in circulation, businesses would suffer financially and people would suffer too. Indeed, the recession reduces the tax base of companies, forcing them to reduce their workforce by making layoffs. These companies lay off their workers in order to reduce the costs they incur in terms of paying salaries. However, this decision is not always wise because when a company has fewer workers, it will reduce its productivity, leading to more financial problems. . Additionally, it puts a strain on the workforce. If these businesses continue to make losses, they eventually go out of business and as a result, the workforce loses jobs. This has been happening since December 2007. Unemployment is one of the biggest problems governments face. (Compton 2002). The end of 2007 marked the start of the Great Recession. At the start of the recession, about 4.9% of the population was unemployed. Over the years, youth unemployment has increased. By the end of 2008, the worst consequences of the recession were visible. During this year, around 2.6 million people became unemployed. This is the worst affected 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 stood at 7%. Last year it reached 9.8%. Nevada used to be the best state financially. However, currently the unemployment rate is estimated at 14%. In 2010, there was about the middle of paper... the range of options one can have. Instead of looking for work in other companies, one should consider working for oneself. You can never lack something constructive and financially profitable if you think about it enough. Savings can also come in handy during rainy days. Recessions would still be there. What matters is how governments, businesses and citizens prepare for it. 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. Fundamentals of the CIM Business Economics Learning System. Butterworth-Heinemann. Webster O. yehudi. 1993. The Racialization of America. Palgrave Macmillan.