Unemployment Rate

Topics: Unemployment, Keynesian economics, Labor force Pages: 10 (2417 words) Published: July 6, 2013
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• Unemployment: can be defined as the number of people (of working age) who are willing and available to work at current wage rates, but not currently employed • Unemployment rate: the percentage of the labour force without a job but registered as being willing and available for work • Labour force: those people holding a job or registered as being willing and available for work • Participation rate: the percentage of the population of working age declaring themselves to be in the labour force


• Frictional Unemployment
• Structual Unemployment
• Demand Deficient Unemployment
• Seasonal Unemployment
• Hidden Unemployment

Frictional Unemployment: When somebody loses their job (or chooses to leave it), they will have to look for another one. On average it will take everybody a reasonable period of time as they search for the right job. This creates unemployment while they look. The more efficiently the job market is matching people to jobs, the lower this form of unemployment will be. Structual Unemployment: Structural unemployment occurs when the structure of industry changes. As an economy develops over time the type of industries may well change. This may be because people's tastes have changed or it may be because technology has moved on and the product or service is no longer in demand. Demand Deficient Unemployment: Occurs when there is not enough demand to employ all those who want to work.‘Keynesian’ unemployment occurs in the transitional period before wages and prices have fully adjusted.It is also often known as cyclical unemployment because it will vary with the trade cycle. Seasonal Unemployment: Tends to be in demand for a short period of the year and the rest of the year would certainly be classified as seasonally unemployment. İndustries that suffer particulary are; Hotel and catering, tourism, fruit picking Hidden Unemployment: There are bound to be people who are interested in taking paid work but who are not classified as unemployed. An example of this is discouraged workers - people who have effectively given up active search for jobs perhaps because they have been out of work for a long time and have lost both the motivation to apply for jobs and also the skills required.

A “Modern” view of unemployment
A similar categorization is retained, but an important distinction is to be noted between: Voluntary unemployment:when a worker chooses not to accept a job at the going wage rate Involuntary unemployment:when a worker would be willing to accept a job at the going wage but cannot get an offer

The Naturel Rate Of Unemployment

The natural rate of unemployment is the rate of unemployment when the labour market is in equilibrium. • This is entirely voluntary.
• It includes:
➢ frictional unemployment
➢ structural unemployment
• In 2003, the number of unemployed persons was estimated to be 2 million 493 thousand persons with an increase of 29 thousand persons (1.2%) when compared to the results of the previous year. When the number of unemployed persons decreased in urban areas, it increased in rural. This number decreased by 2.2% for urban areas and it increased by 11.1% for rural areas. • In the year 2003, the unemployment rate increased from 10.3% to 10.5% for Turkey, from 9.4% to 10.1% for female and this rate was 10.7% for male without any changes, when compared with the results of the previous year. • In the year 2003, 17.2% of total unemployed persons (429 thousand persons) comprised from persons loosed their job and 19.3% of those (480 thousand persons) were the...
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