It stands for jobless or unemployed. Unemployment consists of the labor force (working age) who have no work. Do not confuse the workforce with the inactive population. There are three types of unemployment in peripheral economies are usually four (seasonal unemployment). These types of unemployment are cyclical, structural, frictional and seasonal. Unemployment, unemployed or layoff of employees who can and want to work but cannot find a job. In societies in which most of the population lives working for others, to find a job is a serious problem. Because human costs of deprivation and the feeling of rejection and personal failure, the level of unemployment is commonly used as a measure of the welfare of workers. The proportion of workers unemployed also shows if they are properly leveraging the human resources of the country and serves as an index of economic activity. The problem of unemployment and the need to promote economic development of underdeveloped countries to achieve and maintain occupancy levels comparable with industrial countries, has been the subject of serious consideration to the United Nations. An expert committee of the United Nations economists raised the problem of unemployment to the international level, and outline a series of recommendations for achieving and maintaining levels of production and full employment. Such measures not only considered advisable respective economic policies, but also, entered in considering measures affecting the economic policies of the respective countries at the international level to full employment. Unemployment
One of the main consequences ranging commercial activity is unemployment resulting particularly from the workers, but also of the other factors of production. (Human Resources) Unemployment brings many costs, human distress, loss of dignity, loss of production and savings, the list goes on indefinitely. This is why designers Economic Policies are closely watching unemployment figures published by the Bureau of Labor Statistics, Department of Labor... Unemployment is considered a social prejudice that must be kept to an acceptable level. Determine who is unemployed and who belongs to the workforce is not an easy task. Global economic activity has fluctuations which are known as recessions and expansions. The production of durable goods industries varies more than in service and that in the non-durable goods. Trade fluctuations and duration of unemployment
Total unemployment is divided into three categories: People who remain unemployed less than 5 weeks; of 5 to 14 weeks; and for 15 weeks or more. In fact, the average duration of unemployment is related to the business cycle. In fact much of what is considered as an increase in the unemployment rate is a reflection of increased duration, average unemployment. Unemployment by race, age and sex, the minimum rate is regularly observed among black teenagers. Main types of unemployment
Unemployment is classified into four basic types:
Frictional, Cyclical, Seasonal and Structural.
What is known as frictional unemployment is the continued luxury of people from one job to another, and the group of employees to the unemployed. To the extent that resources are allocated in the market. An important source of productivity improvements is the transfer of workers in sectors of the economy in which labor productivity and wages are low towards sectors which are high. The search for better jobs is the process by which workers find areas where productivity is high, that is, where they can get the most income. Cyclical.-
Cyclical unemployment is related to the business cycle: Basically, recessions and depressions. The way to reduce cyclical unemployment would be to reduce the intensity, duration and frequency of the ups and downs of business. Seasonal.-
Seasonal unemployment is just what its name suggests, comes and goes with the seasons of the year when it rises and the demand for specific jobs is reduced. In very cold weather locations, for example, workers often can only work in the warmer months, the unemployed are "temporarily" during the winter. Employees resorts usually only work during the summer. They are also unemployed during the winter, and the opposite occurs with workers centers skiing winter. Very little can be done to reduce seasonal unemployment.
Supposedly structural changes occur in the economy causing some workers remain unemployed permanently or at least for long periods because they cannot find jobs where their particular skills are used. People tend to be structurally unemployed who cannot find work for which they are trained. Structural unemployment is often associated with technological unemployment, that is, the resulting unemployment increased use of automated machinery. Structural unemployment results when the consuming public no longer want to buy the services of a person in that place. This persisted in finding employment for which has "obsolete" skills in a limited market demand. Some of these people end enter infant industries. However, in some places it does not usually happen. People often refuses to change his residence, expect permanent situation improves, the result is a depression in some regions due to the immobility of labor. Of all the above mentioned types of unemployment, forced unemployment is the one we are most interested from the point of view of macroeconomic theory. It is with regard to this problem has outlined a series of fiscal and monetary measures to stimulate employment and combat unemployment. Economically active population. The whole population of a country is its workforce, as not all are able to work or not everyone wants to work. Then you need to divide the total population of a country (or region) in two groups: The working age population, the population has since working age is too young to labor , However, not all members of the population of working age want to work. Some people decide to stay home, study or other activities. These people may have age to work but do not want to, so do not form part of the labor force or workforce. Also not included in the labor force to those who by some kind of illness or other disability cannot work. It can be said that the population of working age can be separated into two groups: The economically active population, the inactive population, Employed and unemployed this workforce can be divided into employed and unemployed individuals. Where are those employed persons who worked at least one hour in the reference week or who had not worked but had jobs from which they were absent for circumstantial reasons such as illness, vacation leave, scholarship. On the other hand, the unemployed are all persons in the labor force who were unemployed and available for work immediately and not found work but had already taken concrete steps during the last five weeks to seek paid employment or self-employment. Unemployment rate. The percentage of the working population is unemployed, actively seeking work and have not been laid off temporarily, hoping to be hired quickly again. Unemployment rates vary considerably by changes in stroke volume of the labor market, a result of technological change, which leads to the change of employment from one company to another, from one sector to another and from one region to another; addition also by age, sex and race. The overall unemployment rate is one of the most frequently used to measure the overall economic well-being indicators, but given the dispersion of unemployment should be considered to be in imperfect indicator of that system. Causes of Unemployment. When there is a temporary decline experienced economic growth characterized by declining demand, investment and productivity and rising inflation. Economic activity is cyclical, so that booms in the economy is followed by a recession or slowdown in growth. The moment a situation in which the number of people claiming employment exceeds existing job, because the higher real wages attract a greater number of unemployed to find work and make it impossible for companies to offer more employment. When in certain regions or industries where the demand for labor fluctuates depending on the time of year they are. When changes occur in the structure of the economy, as increases in demand for labor in industries and decreases in others, which prevents the job matches the speed it should. Additionally, this situation can occur in certain geographical areas and the introduction of new technologies that replace labor. When for reasons beyond the control of the employee prevents its incorporation into the workplace. Conclusion
The unemployment rate can be adequately modeled as a stationary nonlinear process. The effects of positive and negative shocks on the labor market are asymmetric. In particular, the effects of shocks differ significantly according to the phase of the cycle. In particular, during periods of economic expansion, the shocks have effects on unemployment of longer duration and lower magnitude than the shocks during periods of recession where unemployment has a growth behavior in "step" but trend stationary. A key conclusion that emerges is that, given the asymmetric behavior of unemployment resulting from the dynamic transition between phases of growth and decline of the economy, the speed of mean reversion of the unemployment rate is very slow. However it is not possible to reject the hypothesis of global stability structuralism unemployment. The permanent effect of shocks in the labor market during periods of expansion, it is necessary to implement active employment policies in times of economic growth rather than recessions, where the effects of any single measure will be transient. References
N. Gregory Mankiw (2002). Principles of Economics, 2nd Edition. Editorial: MC GRAW-HILL. Paul Wonnacott and Ronald Wonnacott (1992) Economics, 4th Edition. Editorial: MC GRAW-HILL. http://bookboon.com/en/macroeconimics-uk-ebook