Frictional Unemployment

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Unemployment is an issue that occurs when a person who is searching for job/employment is unable to find work. Unemployment is also used as a measure of the health of the economy. The economists define unemployment as a condition of jobless within an economy. Unemployment is lack of usage of resources and it bites up the production of the economy. It can be concluded that unemployment is in a inerse relationship with productivity of the economy. The history of unemployment is related to history of industrialization. It results in unwanted job losses and willing workers without job. It is worthwhile to mention here that not everyone who is not working is seen as unemployed. A person with a large fortune not looking a job is not included in the…show more content…
In tourist areas, seasonal unemployment could be a big difficulty because work is only available for a few months.This is unemployment that occurs from the inevitable time delays in finding new employment in a market. It may also be called ‘search unemployment as it is relevant to the time taken to search for new employment. For example, if you graduate from university, you can’t expect to find a job straight away which matches your qualities. This time of searching for a job is known as frictional unemployment. Frictional unemployment will also exist when people are switching jobs, either because they have been made redundant or are looking for new one. Frictional unemployment would generally be classed as voluntary unemployment because workers are choosing to remain unemployed instead of getting the first job that comes along.Structural unemployment is a type of unemployment that is caused by a mismatch between the qualities that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is usually brought about by technological changes that make the job qualities of many of today 's workers…show more content…
When there is high rate of unemployment in the country, government has to suffer extra borrowing burden because of decrease in the production and less consumption of goods and services by the people of the less developed countries. Unemployed people not only consume less, it’s even employed has weak purchasing power due to fear about their loss of their jobs.Many policies have been designed to reduce the unemployment problem in the economy. Government just needs to focus on bringing these policies into existence and work out hard in finishing this problem. Government can enlarge capital projects like new roads, constructions of new hospitals and major infrastructural projects which can become a platform in creation for more jobs in the economy.BY reducing taxes, it can result in bringing higher purchasing power to the consumers. It can give some relaxation to consumers in spending their disposable income. Government should take proper steps in investment decisions on large projects like iron and steel, aviation etc., proper policies are to be made to boost up these projects thereby creating employment opportunities. Proper recruitment, training and development are to be required by every company in order to increase the capabilities of employees and to enlarge their skills and shows great performance in upbringing of the organization. Government can take steps to reduce the interest
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