Unemployment Analysis
Unemployment Analysis
Unemployment occurs when a person is not working but is actively looking for work. Economists have essentially identified four different types of unemployment which are frictional unemployment; structural unemployment; seasonal unemployment; cyclical unemployment.
Frictional unemployment is best described as a highly skilled worker that is in between jobs because they are holding out for right job that best suits their needs and skills. Frictional unemployment usually occurs when someone leaves their job in search of a better one or a when a college graduate is seeking employment and wants to find the best job in their field. Frictional unemployment is ongoing and impossible to eliminate even in the best performing economy. As a matter of fact, frictional unemployment is the only type of unemployment that is actually beneficial to the worker and the economy because it encourages workers to seek out the job that they are best suited for, while giving companies the opportunity to hire the best employee who can provide useful skills to benefit the overall growth of the company. The thing that distinguishes frictional unemployment from structural unemployment is that a suitable job exists for the unemployed worker. The problem is the worker hasn’t found the right opportunity that best suits their needs and skills. In many cases the unemployed worker may not know about available jobs or the jobs that they are aware of may not meet their needs such as the location they want to be in or meet their salary expectations.
Per the article “Little Federal Help for the Long-Term Unemployed”, written by Annie Lowrey and Catherine Rampell, economists predict that frictional unemployment could be transformed into structural unemployment because the problem will no longer be that there are just too few jobs and too many job seekers, but a large group of skilled workers like craftsmen will no longer match employer’s needs as technology continues to
Unemployment occurs when a person is not working but is actively looking for work. Economists have essentially identified four different types of unemployment which are frictional unemployment; structural unemployment; seasonal unemployment; cyclical unemployment.
Frictional unemployment is best described as a highly skilled worker that is in between jobs because they are holding out for right job that best suits their needs and skills. Frictional unemployment usually occurs when someone leaves their job in search of a better one or a when a college graduate is seeking employment and wants to find the best job in their field. Frictional unemployment is ongoing and impossible to eliminate even in the best performing economy. As a matter of fact, frictional unemployment is the only type of unemployment that is actually beneficial to the worker and the economy because it encourages workers to seek out the job that they are best suited for, while giving companies the opportunity to hire the best employee who can provide useful skills to benefit the overall growth of the company. The thing that distinguishes frictional unemployment from structural unemployment is that a suitable job exists for the unemployed worker. The problem is the worker hasn’t found the right opportunity that best suits their needs and skills. In many cases the unemployed worker may not know about available jobs or the jobs that they are aware of may not meet their needs such as the location they want to be in or meet their salary expectations.
Per the article “Little Federal Help for the Long-Term Unemployed”, written by Annie Lowrey and Catherine Rampell, economists predict that frictional unemployment could be transformed into structural unemployment because the problem will no longer be that there are just too few jobs and too many job seekers, but a large group of skilled workers like craftsmen will no longer match employer’s needs as technology continues to