Unemployment is defined as a situation where in a country, citizens who had reach a working age is unable to get employed even though he/she is actively searching for jobs. Unemployment rate is usually used as a measure of the health of the country economy and is measure by the number of unemployed people, divided by the total population of the work force. In general, a country with a lower unemployment rate has a better economy compared to a country with high unemployment rate. When a country faces high unemployment rate, it affects the overall economy, creating a cyclical problem. When people have lesser money to spend because of unemployment, companies suffer from decrease in revenue.
Types of unemployment 2.3.1. Seasonal Unemployment Seasonal unemployment occurs when there is limited need for a specific type of work to be performed during a certain time of the year. Professionals who work in a specific season often charge fees for their services, which provide the equivalent of an annual income, or work in multiple fields with different prime seasons. It affects certain industries more than others such as catering and leisure, construction, retailing, tourism and agriculture. (http://www.businessdictionary.com/definition/seasonal-unemployment.html) 2.3.2.
According to Schmitt (2013), the minimum wage has slight or even no noticeable effect on the employment rate in that the cost generated by minimum wage is large relative to most of the firms. Therefore, dismissal might be a common resolution for reducing their financial commitment and causing the rise of the unemployment rate. Apart from the employment aspect, SMW also affects workers’ health in certain extent. Business profits are the first priority in many businessman’s minds; however,
When seen in perspective of only Natives “Immigration reduces the wages of natives in competition with immigrants by an estimate of $402 billion a year, while increasing profits or the incomes of users of immigrants by an estimate $437 billion” (Camarota). Since immigrants come to this country with no previous knowledge or education because their sole purpose to come is to find more opportunities in the United States resulting in them not having a decent economic income. In the United States, immigrants or nonimmigrants, who are uneducated pay less taxes and since their economic status is of low income they receive government aid. The government helps them to be able to have a stable living to survive by giving them food, clothing, schooling, etc. But comparing illegal and legal immigrants, those who are legalized receive more welfare for the fact that they are more eligible to more programs.
Introduction: Unemployment generally defined as the number of persons who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly (Clark, 2003). High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The impact of the unemployment is seen with the individuals and household curtailing the consumption drastically to meet financial
What is unemployment? Unemployment occurs when a person who is actively searching for unemployment is unable to find work. It is often used as a measure of the health of the economy. The most frequently cited measure of unemployment rate. The Unemployed are those of age 15 and above who satisfy the following criteria: without work and has no form of salary is currently available for work and seeking work.
When the aggregate consumption falls the investment incentives for the investors also gets reduced. So as a result the national income or the Gross domestic products gets squeezed. We do possess an overloaded supply of human capital, but the quality of this factor of production is quite low that instead of getting benefits from it we are getting worse off. Moreover when a large percentage of youth remain unemployed it represents a situation of inefficient use of this
Unemployment have a relationship with inflation and low economic growth .According to the economists South Africa is facing Stagflation. There are possible solutions to decrease unemployment. 2. Unemployment is the number of people in the work force who want to work but do not have a job or state in which people are without work but are actively seeking employment. It calculated by dividing the number of people who are unemployed by the total work force, it is expressed in percentage.
Even in a healthy economy, frictional and structural unemployment will also occur. Frictional unemployment is transitional unemployment due to people switching between jobs, either because they have been made redundant or are looking for new employment. It may also be called ‘search unemployment’ as it relates to the time taken to search for new job. Frictional unemployment will always exist in an economy due to there are not perfect information and it takes time to find work. First, unemployment is voluntary.
If it is caused by the time it takes to find a new job or a graduate student looking for his first position, then it is called frictional unemployment. The second and more harmful unemployment type is the cyclical one which is induced when the "overall demand for goods and services in an economy cannot support full employment" like in a case of economic contraction (Study.com, (n.d)). This type although critical is not the subject of my essay which will focus on the third kind of unemployment called structural. "This one exists when there are jobs available and people willing to do work, but there are not a sufficient number of people qualified to fill the vacant jobs." In other words, when there is a mismatch between the available jobs and the skills of the workers.