Various Types of Unemployment

The second type of unemployment is also one that can be easily grasped by most people. This type of unemployment is frictional unemployment and is defined as, “the unemployment which exists in any economy due

Frictional unemployment are individuals that are temporarily unemployed while transiting between jobs or just entering the labour market. This kind is typically short in duration but always present in a market economy.

With an unemployment rate of 5% and a population of about 326,079,646 people, there can be about 163,039,823 unemployed people in the United states. There are many things that the United States government can do to reduce Unemployment. In order to reduce the unemployment rate in the United States, the United States government could reduce the federal minimum wage to allow employers to hire more employees because of the money that they save, increase the number of long term construction jobs, and decrease the number of jobs that are outsourced to other countries.

When governments look at policies to reduce unemployment, they tend to look at the short term and then the long term. In the short term, they need to ensure there is sufficient demand and economic growth in the economy to help control cyclical unemployment. This is done by adopting

Economics Define unemployment? Provide an example of the three types of unemployment. Which type of unemployment is most problematic and why? What type of unemployment problem(s) does the U.S. currently have and why? What is a possible solution to the unemployment problem(s)?

One of the common types of unemployment is called Frictional Unemployment. Frictional unemployment always exists in the economy, and it is a temporary transition made by workers and employers (Investopedia, Frictional Unemployment, 2015). Furthermore, this is caused by frictions in the economy, and is “represented by qualified individuals with transferable skills who change jobs” (McGlasson, 2009). An example of

 Cyclical unemployment or Keynesian unemployment occurs when there is deficiency or decrease in the demand for goods and services in an economy5. It occurs when aggregate demand reduces and there aren’t enough jobs for people that wish to work. Cyclical unemployment is affected and caused mostly by market forces6; reduction in the demand for goods and services in an employer’s mind usually means fewer workers are needed so they adjust by temporarily laying off workers and cutting hours of employees retained to fill reduced product demand. Professor Feld man in his unemployment lecture said “Employers usually don’t start hiring immediately when demand begins to rise until they are confident that economic growth will continue the recall experienced workers or hire new ones” this is because of the fear of market instability or market fluctuations in a weak economy.

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).

Unemployment is a phenomenon that occurs when a person who is actively searching for employment but is unable to find work. In recent months, there has been a debate has appeared asking if the U.S. unemployment rate is indicating the economy has reached or nearing reaching full employment. That is a reasonable question considering the unemployment rate has reached an all-time low of 4.4%, and it has not been that low for years (FRED),. A reason for the lower percentage is that “employers added 211,000 jobs in April as the unemployment rate ticked down to 4.4 percent, the lowest level since May 2007” (Worstall). Unemployment is one of the sectors of the overall economy that is still lagging with regards to other sectors. It also appears that some businesses may been hiring more and willing to take more people in to employ. It is important to note that while the unemployment rate is still existing, it is surely creeping down. The low unemployment will help with the GDP because more goods and services will be stimulated with all the new workers being eager to work.

Unemployment is defined as someone who is out of work yet actively searching. It is usually split into three different types: Cyclical, frictional and structural unemployment. Structural unemployment is when there is a difference between the characteristics and skills of the people looking for work and those hiring workers. Frictional

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.

According to economists, employment and unemployment results when the supply and demand for human resources or labour is out of balance. Supply and demand are influenced by a range of forces that are the result of the interaction of economic, structural and policy factors.

Unemployment takes place when a subject who is actively incisive for employment but impotent to find work. Unemployment is frequently seen as a measurement of the economies overall health. When calculating to number of unemployed people in a district is primarily perceived as an ‘unemployment rate’. An unemployment rate is the amount of unemployed subjects divided by the amount of people in the labour force in an area.

Unemployment plays a huge factor in the appearance of a good economy. All over the world governments try to decrease the amount of people that are unemployed in its country. Governments always want to try and provide "fixes" to things such as unemployment by instituting minimum wage laws, job security laws, and setting regulations on working conditions. While most of these things may seem necessary and even beneficial we have learned that laws and regulations such as these set on businesses typically hurt the ones they are trying to help the most. It is another case of focusing on the goals that these policies have and not focusing on how well they work and not how well they work out for the group of people that these policies are put in place to help. We have already learned about how things such as price controls can be bad for the economy and it is no different applying it to the agricultural industry or the labor force.

Considering the unpredictable nature of economy today, unemployment is something any of us may have to face at almost any point of time in our careers. The inflating world population, if characterized by a decline in its educated lot, can leave a huge number of people unemployed. The economic imbalance in society is one of the important causes of unemployment. The consequences of unemployment are many. Apart from adding to the economic imbalance of society, unemployment results in dissatisfied and frustrated individuals who are forced by circumstances to remain unproductive.