Topics: Unemployment, Economics, Natural rate of unemployment Pages: 3 (1144 words) Published: March 24, 2013
Everyone's Biggest Nightmare

Ask anyone; the biggest nightmare out there is unemployment. It's something that no one ever wants to face in their lifetime. It effects not only their sleep and dreams, but their reality as well, which makes it worse than other nightmares. It effects how you live, how you eat, how you are able to present yourself to others, and so much more. You need money to function in this modern day world and you need a job in order to get that money. Unemployment also alters the economy. With more people unemployed, less money is filtered through to the government because people are trying to save their money and buy less. Being unemployed changes everything.

“Unemployment occurs when an individual is without a job, or work, or is not actively seeking a job,” according to Wikipedia’s article broaching the subject. No real solution has been created to cure, or stop unemployment because the causes of unemployment stem out from so many different problems, both personal and economical. An example of a personal affair dealing with unemployment would be that while an employer cannot just simply fire you, in most cases, they can begin to make the workplace uncomfortable so you leave or wish to leave. An economical example would be like during times of recession, where unemployment rates are incredibly low, employers do not have the means of supporting a certain number of employees and are forced to let some of them go. There are also several different types of unemployment, the two main versions being structural and frictional. Structural Unemployment is based upon structural problems concerning the economy and different variations of supply and demand. While no real causes have been solidified, arguments blame disruptive technology and globalization. Frictional Unemployment focuses on voluntary decisions by an individual to work. Entry wages and wage rates are often the largest factor that effects the decision to take a job or not to.

Continue Reading

Please join StudyMode to read the full document

Become a StudyMode Member

Sign Up - It's Free