Unemployment: An evil necessity?
By definition economics is “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services.” And as with other types of sciences, economics contains many beliefs and theories that may be difficult to understand, yet are essential in the “day to day” decision making for many people. But also like other sciences, economics has evolved into what it is today. And it will continue to evolve as the practitioners of the science debate, test and discover better and more efficient way to “analyze the data.” Perhaps more than any other time in our nation’s history, people have ...view middle of the document...
The reason for this paper is to provide a better understanding of unemployment. Multiple times throughout our life either you or someone you know will be directly affected by unemployment. The hope is that as we learn more about it, we can make the steps necessary to avoid being part of it in the future. There are many conditions that play pivotal roles that influence the rate of unemployment. Such factors include wages, labor, demand, consumption and technology. In the next section, I will briefly explain what unemployment is and the different “types” of unemployment generally seen in the economy. Section three discusses types of unemployment seen through the years. It shows the different “forms” they take and how it has evolved until today. Section four will discuss some of the different ideas learned through economic thought over time, how it relates to unemployment seen during its time period as well as in the present day. Section five will conclude the paper by briefly reviewing some of the important points that were discussed.
2. The Major types on unemployment
Unemployment is defined by Webster’s as “the total number of people who do not have jobs in a particular place or area” We know that unemployment consists of more than just that simple explanation. There are two main types of unemployment; voluntary and involuntary. Frictional unemployment falls under voluntary, whereas involuntary consists of structural unemployment, cyclical unemployment, and classical unemployment,
Frictional unemployment- Comes to people who are making a change between careers, jobs and locations. Included are people who are changing careers due to a change of interest, employment (after quitting or being let go), change old location (people who move while being unemployed), people re-entering the workforce(such as those who have recently raised children) and people entering the workforce after graduating from college. Frictional unemployment is always present in an economy. The important aspect here is that hopefully the frictional unemployment duration is not too long as to have an effect on the economy. “(The economy) suffers, since some work will not get done” (Esoteric, 2009.)
Structural Unemployment- Is unemployment that can occur when there is an “absent” demand for (some) workers who are currently available as labor in the economy. This “Absent demand can present itself in two ways. First, through changes seen in the advancement of technology, and second through changes of “tastes” seen within the marketplace. Over the last 20 years we have seen the video recording format go from VCR’s (Video Cassette Recorders) to DVR’s (Digital Video Recorders). As a result, the services of the “VCR repairmen” have slowly declined until the need was none existent. The workers who were skilled in the profession are thereby required to find other industries to be employed in (usually through newly learned skills) or remain unemployed. Next, as...