Causes And Effects Of Unemployment
Causes and Effects of Unemployment
Travis Epling
Strayer University
ENG 105
Jeanette Trammel
9/14/14
Causes and Effects of Unemployment There are many reasons for unemployment in the United States and around the world. Some of these causes are created by the individual and others are out of their control. No matter what the cause for unemployment, it has a devastating effect on the individual, family, and economy. Unemployment defined by the Encyclopedia Britannica is the condition of one who is capable of working, actively seeking work, but is unable to find any work. In addition, to define a person as unemployed, the person must be an active member of the labor force in search of work. (Encyclopedia Britannica, 2012) Unemployment can be caused by several different factors. Depending on the reasons for unemployment, they are classified as such: frictional, structural, and cyclical. There will always be a certain number of people that are frictionally or structurally unemployed due to varying reasons in the economy. Frictional and structural unemployment are usually specific to a person or small region, however, cyclical unemployment only happens when an economy is in a downturn. It signifies a decrease in the gross domestic product or GDP. Unemployment affects not only the unemployed but also society as a whole and the effects can be monetary and/or social. Overcoming certain barriers to job creation can help reduce frictional and structural unemployment. Cyclical unemployment requires government intervention. Using Keynesian economics, government spending must increase to shift the demand curve to the right, which causes employment to rise. Overall, any type of unemployment is an issue but there are ways to reduce the unemployment rates and keep our economy at least close to full employment thus reducing the unpleasant effects of unemployment.
Types and Causes of Unemployment
Travis Epling
Strayer University
ENG 105
Jeanette Trammel
9/14/14
Causes and Effects of Unemployment There are many reasons for unemployment in the United States and around the world. Some of these causes are created by the individual and others are out of their control. No matter what the cause for unemployment, it has a devastating effect on the individual, family, and economy. Unemployment defined by the Encyclopedia Britannica is the condition of one who is capable of working, actively seeking work, but is unable to find any work. In addition, to define a person as unemployed, the person must be an active member of the labor force in search of work. (Encyclopedia Britannica, 2012) Unemployment can be caused by several different factors. Depending on the reasons for unemployment, they are classified as such: frictional, structural, and cyclical. There will always be a certain number of people that are frictionally or structurally unemployed due to varying reasons in the economy. Frictional and structural unemployment are usually specific to a person or small region, however, cyclical unemployment only happens when an economy is in a downturn. It signifies a decrease in the gross domestic product or GDP. Unemployment affects not only the unemployed but also society as a whole and the effects can be monetary and/or social. Overcoming certain barriers to job creation can help reduce frictional and structural unemployment. Cyclical unemployment requires government intervention. Using Keynesian economics, government spending must increase to shift the demand curve to the right, which causes employment to rise. Overall, any type of unemployment is an issue but there are ways to reduce the unemployment rates and keep our economy at least close to full employment thus reducing the unpleasant effects of unemployment.
Types and Causes of Unemployment
References: American Psychological Association (2013). Basics of APA style tutorial Retrieved from: http://flash1r.apa.org/apastyle/basics/index.htm Purdue University (2013). Tips and examples for writing thesis statements Retrieved from: http://owl.english.purdue.edu/owl/resource/545/01/