Evaluate Alternative Measures Which Can Be Used To Reduce Unemployment

Unemployment can affect the economy in a number of ways such as increased government borrowing. Higher unemployment will lead to lower revenue

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.

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 measured by the International Labour Organisation (ILO) who conduct a Labour Force Survey (LFS) and through the Claimant Count. The Claimant Count measures those who are claiming Job Seekers Allowance whilst the LFS is a sample survey which is used for the official figures in the UK as this allows comparisons internationally. Through these measures, it is then possible to identify the unemployment rate, which is defined as “the number of unemployed expressed as a percentage of the labour force”. (Sloman 2005 p. 787)

Unemployment refers to the condition and extent of joblessness within an economy, and is measured in terms of the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force.

The recession of 2007-8 resulted in the great number of unemployment as illustrated previous by the DKs curve that suggested an increase in unemployment leads to decreased inflation (Arnold, 2010). Many people become jobless as the banks and other financial institutions started focusing over injecting money into the economy. This problem was to be corrected by reducing government expenditure. By doing so many people lost jobs and employment was greatly reduced.

Every year, the unemployment rate is measured in the United States. The term unemployment refers to the group of people who are actively searching for work and do not have a job. Certain groups of individuals, however, are not factored into the measurement of unemployment on an annual basis. People who are under the age of sixteen, are institutionalized, or are not actively looking for a job are not added when counting unemployment. There are four major types of unemployment, and they include frictional, structural, cyclical, and seasonal.

In order to reduce unemployment rate, the U.S. government should reduce minimum wage so that employers will have more money to pay for more workers, increase the number of long term construction jobs, and decrease the number of people that are outsourced from other countries.

Currently, our country is in a recession, and the unemployment rate is at an all-time high. The unemployment rate consists of people not only out of work but also those who can work and are actively looking for work (Colander, 2010). Unemployment also means there are more people out of work than there are jobs available (Colander, 2010).

Unemployment occurs when a person who is actively searching for employment is unable to find work (Investopedia). It is usually taken as a measure of the level of healthiness of an economy. Unemployment may be as a result of any or all of the following factors: - seasonal layoffs (e.g., in agricultural jobs), technological changes in industry (particularly by increased automation), racial discrimination, lack of adequate skills by the worker, or fluctuations in the economy (Ekwu, 2008).

Wages may be too high because of minimum wage laws or union activity. Consistent with classical unemployment, frictional unemployment occurs when appropriate job vacancies exist for a worker, but the length of time needed to search for and find the job leads to a period of unemployment.[5] Structural unemployment covers a variety of possible causes of unemployment including a mismatch between workers ' skills and the skills required for open jobs.[6] Large amounts of structural unemployment can occur when an economy is transitioning industries and workers find their previous set of skills are no longer in demand. Structural unemployment is similar to frictional unemployment since both reflect the problem of matching workers with job vacancies, but structural unemployment covers the time needed to acquire new skills not just the short term search process.[7] While some types of unemployment may occur regardless of the condition of the economy, cyclical unemployment occurs when growth stagnates. Okun 's law represents the empirical relationship between unemployment and economic growth.[8] The original version of Okun 's law states that a 3% increase in output would lead to a 1% decrease in unemployment.[9]

Most economists have argued that unemployment increases the more the government intervenes into the economy to try to improve the conditions of those without jobs. For example, minimum wage laws raise the cost of laborers with few skills to above the market equilibrium, resulting in people who wish to work at the going rate but cannot as wage enforced is greater than their value as workers becoming unemployed. Laws restricting layoffs made business less likely to hire in the first place, as hiring becomes more risky, leaving many young people unemployed and unable to find work.

The top causes are increased population, rapid technological change, . The various effects of unemployment include financial and social . Unemployment has become a major problem which affects our life, health, economy and community. So countries should build more companies and factories in order to provide more opportunities and positions to respond to the need of the increased population. Moreover, there should be unemployment insurance to help unemployed individuals in their financial problems till they find a job. It is important also to utilize the vocational education along with other skills courses' in order to prompt the education and skills of the workers to meet the labour market need. It creates negative affects to unemployed as they are jobless and suffer from worse prospects to find new job and those who are employed feel less secure to keep their jobs in future. However for overall development of economy, government and individuals has to take initiative steps in increasing the productivity and improving the standard of

Money is essential to any individual looking to have a decent lifestyle; labor is the avenue through which this is acquired. The economy goes through various fluctuations in activity causing unemployment to fall, rise, or level out. What this creates is the first type of unemployment, known as cyclical; frictional is the second type, caused by a temporary leave (for whatever reason) by the employee, and structural is the third type, varying with the economic changes in demand. The absence of unemployment at its maximum level is termed full employment, another version of unemployment. The term encompassing the sum of the frictional, structural, and, yet another type of unemployment, surplus unemployment is that of the natural rate of

There are three more types of unemployment the structural, the frictional and the cyclical. The structural unemployment is resulting from changes which occurred in the economy. These changes simultaneously open new positions for trained workers. Frictional unemployment is when people moving between jobs, careers, and locations. Cyclical unemployment can happen when the unemployment rate goes to the opposite direction as the Gross Domestic Product growth rate. So when GDP growth is negative unemployment is high.