Causes Of Unemployment Essay

An increase in the unemployment rate means that more individuals do not have an income, thus meaning many households suffer reduced disposable funds. This causes a decrease in the level of aggregate demand within the economy and therefore reduces economic growth. This in turn causes a slower circular flow of income, meaning that households may be forced into or past poverty, as a result of the lowered income generated, reducing the living standards and quality of life. The downturn experienced by the economy can also offset many individuals seeing them not wanting to return back to the workforce due to the lack of jobs available, making them long-term unemployed rather than cyclically unemployed, or if the firm initially was promoting structural change, structurally unemployed. Combined with poverty, the aspect of unemployment can lead to other severe mental health issues and illness reaching extremes.

This article is related to macroeconomic which examines how the economy functions and its performance. Unemployment as a whole is related to macroeconomics. There are many reasons as to why a person could be unemployed. He or she could be retrenched, fired or still be looking for a job. However, if

in structure of demand for products of different industries, elimination of outdated industries and professions. For instance, unemployment is caused by foreign competition or Cathy lost her job as a cashier due to the creation and use of self-bill out counters. Structural unemployment exists where there were unemployed workers may be short of technical capacity of talent and the claim of the new job opportunities. They are employed but at the same time are unemployed at other time. When a season’s occupation is not a demand occurs. Ski resort unemployment is may be higher in the summer because there snow.

A condition that has existed since the beginning of commercialization, unemployment has been in our history since its monumental recognition in 1929. The Great Depression is really when unemployment became a real issue and its highest peaks where between 1932 and early 1933 when the average rate of unemployment was 24.9%. Fast forward almost 80 years and unemployment is still a political issue whose rate has experienced a roller-coaster ride of highs and lows. Unemployment has many forms, but it is technological unemployment, that is a crisis which if declined will lead to an excellent and a benevolent rise to our nation’s economy.

In 2011, the rate of unemployment is at 9%. Although there is a decline it has been rather slow. Financial analysts predict that unemployment rate would drop to 8%. Even for the people who still have their jobs the hours that they work have been reduced since then. With reduced hours the productivity of the workers would not be fully exploited which in the end, affects the economy. This is so because with a small fiscal base the economy has not been able to recover from recession fast enough. Although there have been positive growths in the employment rates these growths are barely enough. They do little to help in the dire situation. This only means that joblessness is something that the population would have learned to live with.

There are three different kinds of unemployment that affect our economy: frictional, cyclical and structural. Frictional unemployment occurs when there is a time laps between being employed and looking for work. This term can also be referred to as search employment because it is the time spent searching for a place of employment. One example of this would be a student taking time off of work to finish college and get a 4 year degree. Usually, it takes a lot of time and dedication to finish the last years of school, so some students tend to go to school full time and work part time or not at all. This type of unemployment is also classified as voluntary unemployment because this period of unemployment is at the discretion of the person to some small degree. Secondly, there is cyclical unemployment which changes depending on the business need; for example, workers are laid off when business is bad - then

Unemployment is one of the main financial complications in America today. Individuals who are measured as unemployed if the individuals is looking for work or laid off for more than a week. There are numerous diverse details why an individual could be jobless. Three of those causes are cyclical, structural and seasonal unemployment. The administration tries to find answers in order to decrease unemployment by making up guidelines.

Unemployment is the state of not having or finding work. Unemployment is a big issue in today’s society with the joblessness rate being 199.4 million people or 6% of the entire world. Being so hard to find a job, the unemployment rate begins to rise. It is projected that the unemployment rate will add up 1 million additional people during the year of 2017.

Economic – Job loss may become a factor, as well as job creation, although it depends on the sector

However, life has changed, globalization and feminism have had a huge impact on the work environment all around the world. Technology has also made many jobs easier, yet very, very similar. Because of these changes, unemployment has become an issue all around the globe. The government views the unemployment situation as an individual problem.  From the government’s perspective, unemployment is due to the lack of training of the individual.  However, because

Having a lot of layoffs that can dramatic the effect on unemployment. No matter how you justified the ins and outs may be the effects of a lay-offs affect the working class general standard of living. As global economic slump carry on to affect a amount of businesses, and subsequently corporations, many are optional to route to severe incomes in order to stay alive. Organizations are more or less all the time is the first to go. Which case the economy to have a higher unemployment rate which causes salaries to drop and people will slow down with spending. And it will make a huge impact because no one will be buying then production will be down and this will affect households, businesses and our

Firstly Cyclical unemployment or demand deficient unemployment is caused by a lack of spending throughout the economy and generally affects all sectors of the economy because spending is falling. To overcome this, the government needs to introduce policies which seek to boost spending throughout the economy. An example would be a loosening of monetary policy and cutting interest rates which make borrowing for individuals and businesses cheaper. They borrow money which is then spent in the economy which

Unemployment is divided into three types which are frictional unemployment, structural unemployment and cyclical unemployment. Firstly, frictional unemployment is the portion of unemployment due to the normal working of labor market, such as skill matching problems. Secondly, structural unemployment is the portion of unemployment that is due to changes in structure of economy likes technological advances will cause higher unemployment. Last, cyclical unemployment will only occurs during the period of recessions and depressions.

There are many reasons for unemployments. For instance, technology, it is replacing workers. “ Most of these workers need more training before they can get a new job in their field.” Another reason is when there’s less demands it creates a cyclical unemployment. Cyclical unemployment is when “ companies loss too much profit when demands fall, If they don’t expect sales to pick up anytime soon, they must lay off workers.” Examples of this is the “ Financial Crisis of 2008” and the “ Great Depression of 1929”.

Money is an important component that can help ones to function properly in this society. However, money defines our self-worth and value in this society. For decades, unemployment has become a big issue in our community. The younger generation are the one who suffers the most from the crisis. In 2009 alone, 6.7 million youths joined the ranks of the unemployed, and compare this with an average annual increase of 191,000 in the 10 years before the crisis 1997 to 2007(Elder,2010). Youth unemployment is a crucial issue in our society. Unfortunately, a lot of young people are going through that situation. When it comes to find a job, young people are the less fortunate for many reasons. For instance, some employers might be biased on ages and believes that young people do not have skills or enough experiences to perform at the level required for the jobs. The problem of youth unemployment has many causes and consequences in our society. Youth unemployment can affect the economy, family relationship, increase crime rates and, mental health.