Unemployment, ever think about what happens to people when they loose their job? Where do they go? What do they do? How do they provide for their family? These are everyday facts about unemployment, one of the largest measuring sticks for an economy. Before you can answer any of these questions.
We must determine what causes or influences unemployment? Government is the cause of unemployment. Government has a great deal of influence on unemployment. For instance, government increases minimum wage rates, which price out potential employees. Regulations that government issues affects unemployment.
These regulations places high cost onto business that decrease their profits, which in return decrease their employees. The presence of unemployment is a remarkable one. Our economy can not hide or run from unemployment. Unemployment affects everyone within an economy. One person unemployed may not seem to harm anybody, but a large number within an economy does cause a wave of concern.
However not every economy is similar or affected by unemployment in the same way. Each economy has its own problems of unemployment. These problems arise from the different types of unemployment. Some nations are severely affected by seasonal unemployment, while others are prone to structural unemployment. In addition to the two mention previously, two other category of unemployment exist and they are frictional and cyclical unemployment. The severity of unemployment that affects an economy is disguised by misrepresentation of reported unemployment rates.
What is unemployment? It depends on which party you ask. The political definition states that a person who does not have a job, but are willing and looking for one. The economist explains unemployment as a person who is not working and is looking for a job, but is only willing to work at the prevailing wage for what they do. The definitions presented above seem similar, but are apples and oranges in comparison. The political definition states that any person who is looking for a job will take anything that becomes available to them. In short they will work for minimum wage in order to stay employed.
This definition forgets that people have tendencies not to accept anything below what they are worth, regardless of skills or educational training that they have. While the economists definition includes that fact that people are only willing to work at the wage that is appropriate to what the are skilled for. For example, a steelworker will not work at McDonalds, because he is worth more than minimum wage, and will not work for anything otherwise. While our steelworker is unemployed because he does not desire to work at McDonalds he contributes to frictional unemployment.
Frictional unemployment is the wasted time and resources that people spend looking for jobs. There are jobs available but people have to search for the right jobs. Other factors that contribute to frictional unemployment are the economical composition of the economy, and cultural values. The economical composition contributes to frictional unemployment greatly in part, because a small economy that is composed of several large firms would in theory reduce frictional unemployment. Where as the same economy has 100 small firms the friction it causes by searching for the right jobs would increase.
I quit is a popular statement. It is rather rash, but very direct. The statement often leads to an increase in frictional unemployment, because people leave their jobs without attaining a replacement while in transition. It is a lack of worker etiquette. Etiquette stems from cultural values that have been instilled into a person from family, friends, and any other social network of people. A poor community that lacks values contributes to unemployment.
Kids who grow up within poor neighborhoods or with parents, who do not instill proper values into them, will fuel the flames of unemployment for future generations. For instance, inner city kids often leave their minimum wage jobs because more money can be made from hustling. The problem is that these kids do not know right from wrong or have the sense of an honest living. In addition they are working at the prevailing wage of being a hustler. They do not realize the impact that they cause by leaving jobs and becoming unemployed.
Another form of unemployment that .