“Some people work to live, and other people live to work. Then some people, like me, are both unemployed and alive (at least at the time of this writing).
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This era that we live in is an unstable one. There are too many variables in the economics and the societies that will apply more pressure on people’s survival. One of the biggest problems that this unstableness created was “Unemployment”. The causes of unemployment are either over-population, or technology taking over, and the types of unemployment are summarized in the paragraphs below.
While people move between different jobs, there are periods of time in between when they are unemployed. This is called frictional unemployment. For example, people who just graduated or people who are changing jobs don’t have jobs yet. They lack information and time to find jobs, which takes part in some of the employment in the economy.
Another type of unemployment is structural unemployment. This type of unemployment occurs because of disagreements of skillsets in the labour market. There are many types structural unemployment. Occupational immobilities refers to the problem where individuals cannot move on from previous occupations and skillsets. Having a hard time adapting to the changes of the society’s industry and new occupations. For example, an unemployed former farmer will a hard time finding jobs in the city because they lack the knowledge required for urban jobs. Geographical immobilities refers to the difficulty one encounters when he/she moves region to get a job. For example, the workplace of the new job is near their house, but there’s no school in the area for their children to go to which would lead them to choose between school and office. Technological change is also a cause of unemployment. As technology advances, the workers needed are decreasing. Technologies and machines are replacing human labor force.
Finally, there’s the classical or real wage unemployment which is a little bit more complicated. When salary in a competitive labour market are pushed above the average, e.g. at W2 the supply of labour (Q3) is greater than the demand for labour (Q2), this event occurs. In the other words, wages could be pushed above the equilibrium level by minimum wages or trades unions. This is sometimes known as “disequilibrium” unemployment. When wages in a competitive labour market are pushed above the equilibrium, this occurs.
Cyclical unemployment is when workers lose their jobs due to business cycle and irregular rising and falling output. The usual ups and downs in the economy causing unemployment is also referred to as cyclical unemployment. Because of their products not selling well or the company not doing well, companies tend to cut off labor forces to decrease costs. Businesses sometimes do not have enough demand for employers to employ all the applicants. Cyclical Unemployment rates depend on GDP. When GDP is high, cyclical employment is low. Cyclical unemployment will be high when the GDP is low and the demand is low.
Lastly, Seasonal Unemployment is When an employee is unemployed because the factory only produces certain things in a specific time of a year, it is called seasonal unemployment. For example, certain crops are grown in certain times. So, some employees might be cut-off during low seasons.
So many kinds of unemployment, without ideal solutions. Even people with the ability and potential miss the opportunity of jobs. Shouldn’t the government be in charge of helping these people get jobs? How can we build an ideal society, where everyone contributes to the society?
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