Unemployment is caused by structural, cyclical, and frictional. Structural unemployment changes the basic composition of the economy. They mismatch between the jobs that’s available in the market, and the skills of the available workers in the market. Structural unemployment people usually have skills that are not needed in the market. It’s a type of unemployment that occurs to workers who are displaced by a change in marketplace needs. Cyclical unemployment increases during a recession, and also decreases during an expansion. For example, auto worker maybe laid fewer cars. They will lose valuable employees that have put in lots of time, have the will to work, and have the risk in their health for the company. Therefore, these type of employers avoid the presents of other organization, and government officials. Frictional unemployment is simply the opportunity cost of looking for a new job. It is also considered to be a big part of the natural rate of unemployment. Although, it is thought of as a voluntary leave it can also be, because of layoff or termination with cause. Often employers have a hard time to find qualified candidates. In the business cycle, workers feel more confident to quit their job, and in search of better one, thus increasing frictional unemployment. I believe we need to change the type of statistics used in the media to measure the health of the labor market. By replacing the unemployment rate with two figures is: Total Hours Worked and Total Wage Dollars Earned, we can get a better feel for the health of the economy.
I'm suppose to expand it more, but I'm having trouble in doing that... HELP!!!