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APA
Subject:
Mathematics & Economics
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Essay
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English (U.S.)
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Topic:

Categories of unemployment (Essay Sample)

Instructions:

Discussing the various types of unemployment

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Content:
Categories of Unemployment
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Categories of unemployment
Unemployment is among the leading challenges that most economies in world are facing presently. According to the International Labour Organization, unemployment refers to a situation where individual are without jobs despite having actively searched for one within a period of more than one month (Weiss, 2010). It has been approximated that about 2000 million people in the entire world are unemployed. The cause of unemployment is a controversial issue as various economists have come up with different theories explaining this problem (Warner, 2009). As such, there are various categories of unemployment, depending on school of taught. This essay will be focusing on analyzing the various categories of unemployment, the type of unemployment that is principally responsible for the current high unemployment rate, and the type of unemployment that represents the greatest long-term threat to the economy.
As mentioned above, there are various categories of unemployment. However, the major categories include structural unemployment, frictional unemployment, and cyclical unemployment. Structural unemployment is a kind of unemployment that emerge as a result of a disparity or inequality between labor market demand and the skills of the workers that looking for employment opportunities (Weiss, 2010). Despite the availability of equal or more number of vacancies than the unemployed individuals, they may not have the required skills or they may be not located in areas where these vacancies are available. The major cause of structural unemployment is the labor market’s dynamics which are also inflexible. According to a good number of economists, structural unemployment is the product of a change in the fundamental composition of the economy. While this changes leads to unemployment for some people, it also opens new opportunities for other people particularly the trained workers. For instance, while a change of technology will make some people jobless, it opens opportunities for those who have knowledge of the new technology (McLaughlin, 2011). Structural unemployment is closely related to frictional unemployment, and the major difference is that structural unemployment lasts longer.
Frictional unemployment is a type of unemployment that occurs during the time when individuals are changing over from one job to another, or searching for a new job. This explains why this type of unemployment is sometimes referred to as search unemployment. As mentioned above, it is closely related with structural unemployment; only that structural unemployment lasts for a longer period. Frictional unemployment can be voluntary or involuntary. The major cause of frictional unemployment is the heterogeneous natu...
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