Unemployment And Its Effects On Unemployment - 1317 Words

Money is essential to any individual looking to have a decent lifestyle; labor is the avenue through which this is acquired. The economy goes through various fluctuations in activity causing unemployment to fall, rise, or level out. What this creates is the first type of unemployment, known as cyclical; frictional is the second type, caused by a temporary leave (for whatever reason) by the employee, and structural is the third type, varying with the economic changes in demand. The absence of unemployment at its maximum level is termed full employment, another version of unemployment. The term encompassing the sum of the frictional, structural, and, yet another type of unemployment, surplus unemployment is that of the natural rate of†¦show more content†¦According to one article, â€Å"Structural unemployment occurs when certain industries decline because of long term changes in market conditions† (Unemployment types, 2017). More specifically, as Amadeo states, struct ural unemployment occurs when â€Å"Factories move to cheaper locations† (2017) and more efficient options (such as newer technologies, more skilled employees, etc.) are undertaken. Moving on to the minor types, surplus, being the first, is â€Å"caused by minimum wage laws, unions and wage/price controls. When wages are set at a high level, unemployment often results† (Amadeo, 2017). The second minor type is demand deficient unemployment. When there is less demand for a particular product, â€Å"firms sell less and so reduce production. If they are producing less, this leads to lower demand for workers† (Pettinger, â€Å"Demand Deficient Unemployment†, 2017). Therefore, as the name implies, this is caused by an unmet demand when compared to the people in that specific line of work. The third minor, but also major, type is full employment, which is known to be â€Å"devoid of cyclical or deficient-demand unemployment† (Full Employment, 2017), accor ding to one source, and is not simply, as the name suggests, where everyone has a job. In addition, â€Å"full employment means that unemployment has fallen to the lowest possible level without provoking inflation† (Palmer, 2016). Regional unemployment is the fourth minor type, being impacted by structural unemployment and,Show MoreRelatedUnemployment And Its Effects On Unemployment4263 Words   |  18 Pagesdependency on past history; Hysteresis in unemployment therefore implies that unemployment depends on its past. This further implies that demand or supply side shocks to unemployment have the tendency to permanently affect the unemployment path (Saeid Eisazadeh 2014). There are several explanations for the persistence of unemployment, George S. et al (1988) highlights two broad explanations for the persistence of unemployment. The first states that long run unemployment rate is impacted by exogenous shocksRead MoreThe Effects of Unemployment1828 Words   |  8 PagesTh e Effects of Unemployment Roderick C. LaGrone COM 150 January 28, 2011 Holly McCusker The Effects of Unemployment Over the past ten years there has been a great shift in society’s employment system. Corporate America has taken major cutbacks in the working labor department that has left many citizens unemployed and destitute. Anger and concern over layoffs, wage unproductivity, declining benefits, and the movement of jobs overseas has left citizens with harsh and undesirable views of theRead MoreUnemployment And Its Effects On A Population1182 Words   |  5 Pagesyourself, what is unemployment? Why is it so important? and how does it affect my everyday life? A common misunderstanding that I have encountered throughout the time of my research of the subject is the difference between the term unemployment which refers to people who are out of a job but are prepared to work and unemployment in the sense of a welfare aid to those who are out of a job. I will be speaking to you today on the definition of unemployment, the types of unemployment, the consequencesRead MoreUnemployment And Its Effects On Society1020 Words   |  5 PagesUnemployment is when a person who is vigorously looking for employment and is incapable to find work. Unemployment can affect people in a wide range of ways. The effect of idleness has far-reaching consequences. Even those who don t undergo layoffs in an office may find that their jobs or their personal lives have been destructively impacted. Idleness, as stated above, can have a wide range of affects on different types of people, such as refugees in Austria. Walter Renner and Birgit Senft statedRead MoreCauses And Effects Of Unemployment1611 Words   |  7 Pagesï » ¿ Causes and Effects of Unemployment Travis Epling Strayer University ENG 105 Jeanette Trammel 9/14/14 Causes and Effects of Unemployment There are many reasons for unemployment in the United States and around the world. Some of these causes are created by the individual and others are out of their control. No matter what the cause for unemployment, it has a devastating effect on the individual, family, and economy. Unemployment defined by the Encyclopedia Britannica is the conditionRead MoreThe Effects Of Unemployment On The Economy1656 Words   |  7 Pagesin different economies all around the world is unemployment. Even though the idea of unemployment may seem to be a usual day-to-day problem, the effects of unemployment are adverse on the health and well being of an economy In the United States; unemployment has been fairly low (5% or lower) for much of the past two decades. However even a low unemployment rate affect and undermine economic growth. Let us examine what unemployment means; Unemployment is a situation when there are simply not enoughRead MoreUnemployment And Its Effects On Society923 Words   |  4 Pageswho is available for work, yet he or she does not have any opportunities is called unemployed. When we think of unemployment, we directly refer to a person without a job or â€Å"jobless†. However, we do not consider what were the causes of that situation? Or what was the result? Unemployment has always been a social scourge. It is crucial to understand the causes and effects of unemployment because it can happen to almost anyone in this globe. Also, it is equally important to resolve this issue beforeRead MoreUnemployment And Its Effects On The Economy1452 Words   |  6 PagesUnemployment occurs when a person who is actively seeking employment but unable to find work. It is often used as measure of the health of the economy and has been one of Australia’s most serious long term economic challenges in recent decades. Economic growth is an ongoing process of increase in the production capacity of goods and services over a period of time. This determines economic wealth and individual living standards. These two economic issues have been a continuous matter within AustraliaRead MoreYouth Unemployment And Its Effects964 Words   |  4 PagesYouth unemployment and its effects of the Development in Africa The United Nations defines youth as, persons between the ages of 15-24. Unemployment is defined as the state in which a person does not have a job. It is also a frequently cited measure to determine the state of development in an area of interest. Young people aged between 15 and 25 make up 60% of Africa’s population. That figure translates to 200 million youth, and that number is projected to double by 2045. This meansRead MoreUnemployment And Its Effects On America926 Words   |  4 Pagesschool diploma or GED make up a quarter month 2014 to date† (Bolen). Unemployment is the one of the biggest poverty problems in America. But what is unemployment? Unemployment is described as when people are looking for job within the past four weeks and can’t find work, however, it can also mean an economic condition that is marked by the fact that individuals actively seeking jobs remain unhired (Unemployment Definition). Unemployment affects the United Stat es economic system, and the society in this