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The United States is one of the fast-growing economies in the world, which can be proved by the information obtained from various sources that state that the country possesses attributes that promote the rapid growth. There has been a marked increase in the U.S growth in different facets of the economy. For instance, there has been a positive change in the employment growth percentage, export production, and the construction of various structures that support the American economy. All these variables influence the gross domestic product (GDP). The U.S economy represents approximately 20 percent of the total global output. The success of any economy is influenced by the resources at disposal such as new technology, manufacture, production of goods, the employment status, the revenue owed by a country, and the state of foreign trade. Although the U.S economy is outstanding, it faces various challenges that alter its global performance. This paper uses information from multiple sources to discuss the strengths and weaknesses of the U.S economy in the year 2015.
The United States has some advantages that promote its economy. For instance, it has a high employment rate of 94.7 percent with a population of 319 million people. The large population is essential to the growth of its economy because people provide the necessary workforce. The correlation of 5.3 percent in the unemployment rate describes the significant percentage of individuals who are employed and catered for by the government through job opportunities. Moreover, a decrease in the level of unemployment from 6.2 to 5.3 percent signifies that during the 2014/2015 year, the economy of the United States has developed and there have been more job opportunities for its citizens. Employment is affected by the labor participation rate and inflation.
The reluctance of the U.S government to enforce unemployment insurance is significant since compensation is not given to individuals unwilling to seek for jobs. It is an advantage to the government as such funds are channeled to other projects. The United States outlines that the employment age defined in its guidelines is from sixteen years and above. The labor force participation rate is high due to a large number of the young people who seek employment. The population that contributes to the vast U.S economy ranges from 25 to 54 years. Owing to the U.S population of 319 million and the high life expectancy, there is a high productivity in the economy. An understanding of the productive labor force age is a key to the development of the U.S economy.
Besides the population that dictates the employment number of individuals, one of the strengths influencing the U.S economy is job openings and labor turnover. It is a measure of wellness of the economy in creating new job opportunities that motivate new people in the workforce. Surveys conducted in the United States show that job openings in the year 2015 ranged between 5.4 and 5.8 million in June and September respectively. It is a strong correlate of the job market in the United States. The major factor in the job market that influences this increment is the ability to create various jobs that require a variety of skills, responsibilities, and different performance levels. Furthermore, the labor turnover is necessary to maintain the economy because it inspires employees through talent development and acquisition. Through this, workers stay employed for a long time. Instilling organizational measures such as employee policies by the U.S economy assists in the strengthening of the employee-employer relationship trivial in reducing the labor turnover rate.
Another strength that influences the U.S economy positively is housing and construction. Technical infrastructure is vital for the development of any economy. Top-notch infrastructure ensures that the government enforces laws that protect its property. Infrastructure initiates other developments such as the education industry. For instance, universities and colleges use infrastructure to ensure instilling intellect to students of various professions who are important for the development of the economy. These professionals are also required in the job market. Infrastructure also draws people from other countries who come to learn about the U.S infrastructure and are later employed in the American global economy rather than return to their mother countries. Besides infrastructure, the housing market grows as housing grows exponentially. For instance, housing in the United States is said to increase by 5.2 percent, which was extremely high. The increment in the number of individuals requiring apartments and residential buildings constructed is high. It has increased the prospect of home sales with confirmation from construction firms and rental markets. It has also increased the demand for housing that is a correlate of growth in the U.S economy.
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However, the economy of the United States also faces various challenges, including. weaknesses like consumer spending, agricultural productivity in addition to deteriorating worker skills, burdensome taxes, and systems of regulation. Consumer spending arises from the purchase and use of retail sales. It is a component of the GDP that is influenced by the residential investments, export regulation, and government spending. For instance, the government’s use of money in a revenue generating activity may result in serious consequences that may affect the GDP. In 2015, the GDP grew by 2.4 percent due to the high value of its goods and services. Although GDP is a promoter of the economy, an increase in individual savings and a decrease in consumer confidence may influence the economy.
Potential weaker net exports and decline in government spending led to the increase in the exchange markets by 8 percent in 2015. It prevented the United States from exporting, thereby affecting the domestic producers in the global market. It was a United States’ attempt in the utilization of the dollar value of imports. For this reason, imports flooded the consumer market, which set back the economy. It can cause the economic production decline due to the trade deficits created. It is a weakness since the dollar impacts business in the global market. In addition, employee worker skills are posing a significant challenge in the U.S economy.