Unemployment And Structural Unemployment

In any economy, no matter whether it is controlled by the government or by free markets, people need to work in order to support it. The government does not generate tax revenue by magic. There have to be people in that economy earning an income to ensure that the government continues to collect taxes. In a free market economy, the same applies because there are some services which only an organized government can supply (such as protection from extra-national threats), but there also those which the people get for themselves because of the working of the markets. In any scenario, unemployment is, at the very least, a drag on the economy, and it can be much worse. This paper examines how the unemployment rate in the United States is underreported, and how that fact effects the sluggishness of the present economy.

Advancements in new technology clearly promoted the industrial growth of the United States. The new technologies allowed business owners to reduce labor in the movement of materials from one point to the other. This occurred by using the new technology of railroads and machinery. Business owners

Nearly each advancement we made contributed to the continuous rising of our economy. The extreme increase among jobs contributed to America’s wealth and money, there was a significant drop in homelessness, and families were allowed to live comfortably. “The image in document three shows that factories will begin showing up in small towns and villages” (Document 3). Now that there are more facilities to work, there are more jobs available for the common man. Previously there was only farming, but companies began moving into villages, meaning there are more jobs. “The image in document four tells people that there are more positions to fill. With the brand new assembly line, companies need five people to complete the task, as opposed to one” (Document 4). The automobile conceived a whole new job route with the assembly line. People now only needed to know how to piece together one thing and that opened up five or more times more jobs as there were in the past. “Railroad travel was fast. Going to San Francisco from New York City took only six days” (Document 5). To move this fast a train would need a team to operate it. The new engines required many workers; this showed that there would be work opportunities on the rail road too.

22) When economists view technological change as internal to the economy, they mean that it:

New, high-tech product. Could be destabilized by introduction of much lower cost alternative in a few years.

As stated in the textbook, a technological change is a positive or negative change in the ability of a firm to produce a given level of output with a given quantity of inputs. Along with this technological change, there are substitutes. For example, a substitute for a physical human worker can be the robot who is flipping the burgers in the fast food restaurants. In my opinion, having this robot is a substitute is not only negative for the amount of jobs that won’t exist, it is dangerous. I am curious to see how this world full of new technology is going to be, considering that technology is never perfect and frequently has

The United States is full of amazing things, historic landmarks, pizza, Nascar and countless other things that help set our nation apart. However there is one thing that our nation shares with every other nation in the world that isn’t so great, in fact many people would agree it is one of the worst things for a nation to have. No it’s not smallpox, it’s unemployment. Unemployment is unfortunately something a nation cannot vaccinate against. Sadly nations are always going to experience unemployment, and in some cases it can be a real issue. No one likes to hear about high rates of unemployment just like no one wants to catch a case of smallpox. Yet similar to how many people know little about the disease smallpox few people know much more about unemployment other than the current rate of unemployment. There are many factors that make up unemployment and influence it. This financial report will focus all about unemployment.

But as I will show, a sustained expansion in the economy lasting, now, 13 years has reduced current unemployment to unusually low levels. The gains in reducing unemployment are evident even in the most problematic areas, such as youth unemployment, long-term unemployment and poor employment opportunities for older workers. Unemployment is not a precise concept. This is true even in countries, such as Australia, where most production of goods and services is done through the formal economy, and most people work for

Change and development in technology takes place at almost every second. Even the slightest change in the industry can cause a massive outbreak of invention, directly adding to the huge technological developments.

Because many manufactured goods were now being made interchangeably, the efficiency for manufacturing consumer goods was at an all-time high. Soon, the economies of scale technique was introduced and manufacturers were now able to figure out how much it cost per product depending on the supply, demand, and actual cost of the product. It was now much easier for innovators to focus on upgrading these products, instead of having to make them one by one. Once it was easier to upgrade machines, new

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

If technological change increases structural unemployment, why do most governments and economists encourage such change?

Structural unemployment may occur in the short term with the removal of trade barriers. This will have impact on large numbers of workers, as well as their families and local economies. In growth industries workers often will have difficulties to find employment.

According to one article, “Structural unemployment occurs when certain industries decline because of long term changes in market conditions” ("Unemployment types", 2017). More specifically, as Amadeo states, structural unemployment occurs when “Factories move to cheaper locations” (2017) and more efficient options (such as newer technologies, more skilled employees, etc.) are undertaken. Moving on to the minor types, surplus, being the first, is “caused by minimum wage laws, unions and wage/price controls. When wages are set at a high level, unemployment often results” (Amadeo, 2017). The second minor type is demand deficient unemployment. When there is less demand for a particular product, “firms sell less and so reduce production. If they are producing less, this leads to lower demand for workers” (Pettinger, “Demand Deficient Unemployment”, 2017). Therefore, as the name implies, this is caused by an unmet demand when compared to the people in that specific line of work. The third minor, but also major, type is full employment, which is known to be “devoid of cyclical or deficient-demand unemployment” ("Full Employment", 2017), according to one source, and is not simply, as the name suggests, where everyone has a job. In addition, “full employment means that unemployment has fallen to the lowest possible level without provoking inflation” (Palmer, 2016). Regional unemployment is the fourth minor type, being impacted by structural unemployment and,

Discuss the role of government policy in reducing unemployment and inflation. In your discussion make use of the diagrammatic representation of the macroeconomy developed in lectures in Term 2