Definition of
Unemployment
The term unemployment alludes to the lack of job. An unemployed person is that subject who is part of the active population (is of working age) and who is looking for a job without getting it. This situation translates into the impossibility of working despite the will of the person.
Unemployment is synonymous with unemployment (a word rarely used in Latin America but very common in Spain) and unemployment. You can differentiate between four major types of unemployment: cyclic, seasonal, frictional and structural.
- types of unemployment
- Economic growth, a necessity
- Plans to alleviate unemployment
- Related Topics Tree
types of unemployment
He cyclical unemployment consists of lack of work during a period of economic crisis (ie recessionary). These are, in general, periods that are not too long in time and that are reversed together with the reactivation of the economy.
He seasonal unemployment It arises from the seasonal fluctuation of supply and demand. The agricultural sector offers a clear example of this type of unemployment: in harvest times, the labor supply increases and unemployment tends to disappear; in the rest of the year, the reverse situation occurs.
He frictional unemployment It takes place due to the lack of agreement between the employee and the employer. The characteristics of a job position do not satisfy the worker and he leaves one job in search of another. It is a temporary unemployment and that is usually constant.
He structural unemploymentLastly, it is the most serious as it involves a technical mismatch between the supply and demand for workers. The jobs required by an economy are less than the number of people who need work. This situation requires the intervention of the State to fix the imbalance.
It can help you: Employer
Economic growth, a necessity
Unemployment is the consequence of a series of wrong laws. Which caused employers, who in the beginning felt extremely enthusiastic, have lost that illusion and, discouraged, their production interests have decreased.
The labor market of a society is managed based on growth. If the number of applicants for a given position increases, new jobs need to be created as well. And, for this to be done, it is required that the economy grow at the same percentage as the number of people seeking employment.
It is a circle that is nourished by its different components. If one of these fails, a mismatch occurs that results in excess employment or unemployment: people who are left unable to aspire to a job because the market has stagnated.
See also: Illusion
Plans to alleviate unemployment
To solve this problem, there are no other alternatives than a revision of the laws and economic planning that promotes growth. If governments do not commit to this type of measure and, instead, prefer to create subsidies to help those who do not have a job for free, they are covering up a specific problem in the now without anticipating tomorrow. When these people have exhausted the time in which they can receive these subsidies, they will try to re-enter the labor market without success and the problem of that moment will be worse.
If, on the other hand, the government plans bet on economic growth, using the money from subsidies to create laws that promote growth and encourage employers to improve production; Possibly in a longer time, but also more effective, favorable results may be obtained.
In most countries there are schemes to help those who have been victims of unemployment; because in the place where they worked they have reduced the staff or because for certain circumstances they have been left out of the market. These financial aids are calculated based on what these people have invoiced during their active period. In any case, it is necessary to point out that they are not intended for the people who need them the most, since to access them it is necessary to meet a series of conditions. Therefore, even at this point, this type of solution to unemployment would not be valuable.
Continue on: Subsidy