Unemployment & the Economy

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Unemployment & the Economy

By | December 2005
Page 1 of 7
In economics, "a person who is able to work and willing to work yet is unable to find a paying job is considered unemployed" (Wikipedia, n.d.). Unemployment as a whole is determined by the number of unemployed workers divided by the total labor force. By labor force, I mean the total civilian population which includes both unemployed and employed workers. This will give us the unemployment rate for a given city, county, or country. Unemployment is a nationwide issue that had been plaguing our country for some time. Although in recent years, it seems that is a just a swinging pendulum. So, as we await the next swing which brings a surge of unemployment, I will analyze this ongoing dilemma. The following is a discussion of the different types of unemployment, economy and its effect on the unemployment rate, and a look into the benefits or services provided to the unemployed.

According to economists, there are four different types of unemployment. Seasonal unemployment is "a product of regular, recurring changes in the hiring needs of certain industries on a monthly or seasonal basis" (Boyes, 2005, p.167). One example that comes to mind is holiday "mall jobs". As the annual Christmas season rolls around, businesses have a high demand for additional employees to assist in the mass quantities of new and frequent shoppers. Additional examples include an increase in temporary employees during the ski season, or during the harvest season. The key word here is, temporary. A majority of the seasonal employees are just temporary, meaning that when the demand diminishes, the employees are gone. They are now considered "unemployed" in their transition to find another job. For this very reason, unemployment rates are "seasonally adjusted". The second type is frictional unemployment which is "a product of the short-term movement of workers between jobs and of first-time job seekers". This type of unemployment is uncontrollable in society. This is when...

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