Why is there unemployment?
January 23rd 2012 07:32
The unemployment rate is a political term for the per centage of a population that are not in full time or part time work who are actively seeking work that week. It does not include those who are in part time work who want additional hours or those out of work who have become discouraged and given up seeking work.
According to economists, there are three types of unemployment.
1) Frictional unemployment due to normal market turnover
This describes the constant entrance and departure of people to and from the labour market. Reasons people leave the labour market include parents taking parental leave, those aged 65 may be retiring; personal reasons such as a desire to go travelling, return to study, illness or not liking a job. People join and rejoin the labour market when they finish school and return from travelling, parental and sick leave or seek a new career parth. The length of unemployment for frictional market forces depends on how effecient employers are at matching jobseekers to jobs.
2) Structural unemployment
This arises when a particular region or industry declines. An example is the Australian manufacturing industry. Competition and tax incentives from offshore markets has seen mass closures of factories in entire sectors.
The textile industry has almost outsourced its entire manufacturing force. Even high end designers such as Norman have sent their factofries abroad, although they haven't lowered their prices. Bonds famously sacked workers in Australia in 2008 even though they had made record profits. Aussie Bum swimwear has capitalised on pubic anger towards this and make their apparel in Australia.
The Internet and other technological advances have caused one of the greatest transformations of the labour market in history. Great companies of the 20th century such as Kodak are now facing bankruptcy and it is prudent for employees to update their skills to meet these changes if they want to stay employed.
3) Cyclical unemployment
This arises from a slowdown in the pace of economic expansion. For example, a bank may hire extra staff before the end of financial year to get accounts up to date or a department store employs extra staff at Christmas time but after that period the workers are laid off.
According to economists, there are three types of unemployment.
1) Frictional unemployment due to normal market turnover
This describes the constant entrance and departure of people to and from the labour market. Reasons people leave the labour market include parents taking parental leave, those aged 65 may be retiring; personal reasons such as a desire to go travelling, return to study, illness or not liking a job. People join and rejoin the labour market when they finish school and return from travelling, parental and sick leave or seek a new career parth. The length of unemployment for frictional market forces depends on how effecient employers are at matching jobseekers to jobs.
2) Structural unemployment
This arises when a particular region or industry declines. An example is the Australian manufacturing industry. Competition and tax incentives from offshore markets has seen mass closures of factories in entire sectors.
The textile industry has almost outsourced its entire manufacturing force. Even high end designers such as Norman have sent their factofries abroad, although they haven't lowered their prices. Bonds famously sacked workers in Australia in 2008 even though they had made record profits. Aussie Bum swimwear has capitalised on pubic anger towards this and make their apparel in Australia.
The Internet and other technological advances have caused one of the greatest transformations of the labour market in history. Great companies of the 20th century such as Kodak are now facing bankruptcy and it is prudent for employees to update their skills to meet these changes if they want to stay employed.
3) Cyclical unemployment
This arises from a slowdown in the pace of economic expansion. For example, a bank may hire extra staff before the end of financial year to get accounts up to date or a department store employs extra staff at Christmas time but after that period the workers are laid off.
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Comment by Nicasio Martinez
One of the 99% - Bio Guide
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Now many are living at home with their parents.
We paid more for goods and services, because we earned more. Also! Our distribution of goods and services are not based on 'fair market price (least price to develop a larger market share), it is about 'what the market can bare (highest price possible, fewer items sold = smaller market share but higher returns on a smaller market and investment. Brand names like Kodak, even GE are but shells operating largely in name only in their once host countries.
International Corporation world famous logos, are now simply serving as the 'cash cows' that bring in the bacon. I see the humor in all of this, after all, why did it take the 99% so long to wake up.
I did not finish high school - but I'm no dummy.
Thanks for stimulating my brain, in dire need of exercise in these silver years.../nm
Comment by Stacia S
Banana Republic
Kenya Adventures
Perhaps you should research running a pilot study for your garlic mosquito repellent. I spend a bit of time in the tropics so will try it.
I still believe that despite the negatives, we are living in one of the greatest times in history with access to information to aid almost any problem one can get.