unemployment

Topics: Unemployment, Inflation, Great Depression Pages: 7 (2167 words) Published: September 21, 2013


Unemployment

Gina
July 23, 2013
Economics
Word Count: 2,112

Table of Contents

What is unemployment?........................................................................................................................................3

The Causes and Types of Unemployment……………....................................................................................................................................3-5

Effects of Unemployment..................................................................................................................................6-9

Social............................................................................................................................................................6-7

Cultural.......................................................................................................................................................7-8

Political.......................................................................................................................................................8-9

Conclusion……………………………………………………………………………………………………………………10

Works Cited………………………………………………………………………………………………....………….11-12

What is unemployment?

Unemployment, in the general sense of the word, means the dearth of jobs for those who are able, willing, and searching for a job. Hence, those who are not eligible (< 14 years old) and those who can not work (roughly 65 >) are discounted from the unemployment line (Dwivedi, 493).

Causes and Types of Unemployment

Causes for unemployment can be as objective as subjective. In this century, outsourcing and insourcing seem to be part of the cause (The Causes of Unemployment, eagleforum.org). Outsourcing is displacing high end jobs to low wage foreign countries to give companies more profit. By outsourcing people, they are left unemployed. Insourcing is bringing foreign people, usually uneducated, to work in the country for less than the US minimum wage (eagleforum.org). By bringing people who will work for less, the Americans asking for minimum wage will not get the job and thus stay unemployed. There are several types of unemployment and its causes. The first type of unemployment is frictional unemployment. Frictional unemployment is the force of unemployed workers between jobs (Dwivedi, 495). Meaning, they are anticipating a job from a temporary dismissal. It can be caused because a worker has decided to take time off, switch jobs, or because he has been fired. This type of unemployment is considered beneficial for an economy to prosper because it would allow for the economy to reach maximum production. With a greater supply of frictional unemployment, filling jobs is facilitated. Nevertheless, unemployment is still unappealing if too much time is allotted. Those under the frictional unemployment category should not stay under that category too long. This would hinder the economy. The government, for that reason, has placed state employment offices and career placement at universities for students/people so the time in the frictional unemployment category is minute (Dwivedi, 495). The second type of unemployment is structural unemployment. This type has similar facets to frictional unemployment. Structural unemployment is the unemployment of workers whose expertise is not in demand (Franz, 2). This could imply that these workers are missing certain characteristics to be hired, thus lacking the appropriate skills for employment. Since they are lacking skills to be hired, any methodology that promotes their development would be beneficial. Training provided by the company would better their work force and possibly decrease structural unemployment. Yet, this type of unemployment can come from the result of not finding a use for previous workers (Unemployment types...

Cited: "Business Cycles, Unemployment, Inflation."Harpercollege.edu. N.p.. Web. 24 Jul 2013. .
D. N. Dwivedi, .
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