Unemployment occurs when a job is less than workers.Also working time is reduced due to the fact that the introduction of new, especially the automated technology.
sharp rise in unemployment seen during the economic downturn.This occurs when the reduced volume of production and the market gets a lot of people who are laid off from work.
order to better understand this concept, consider the causes and types of unemployment.
1) due to the fact that food produced in arithmetic progression, and the population grows in geometric (but here there are "natural" regulation of the number - the epidemic, war, natural disasters);
2) loss in the workplace;
3) new unemployed (graduates, for example).
Sometimes voluntary, involuntary, structural, cyclical, latent, chronic and frictional unemployment.It's not all its types, but most often allocated in the economy.
voluntary unemployment implies dismissal of their own volition.Forced linked to the reduction in production as a result of the employee is out of work.Structural unemployment occurs when the reduction of some industries and the appearance of others, when, during the reorientation of the companies and their transition to the new product is the need for retraining employees or reducing some and hiring new ones.
Cyclical unemployment occurs when replaced by business cycles.It is constantly changing the scale and composition.Hidden are craftsmen, farmers and workers who are not employed full-time.A chronic unemployment - and a constant mass.
Frictional unemployment - a mismatch in time transition of workers from one company to another.It also occurs when moving from one profession to another, from one branch to another.Frictional unemployment - it can be said, the most undesirable type of unemployment.People are looking for and expect a job, moving from one place to another, move from one duty station to another.
Frictional unemployment - is the lack of work-related objectively necessary movement of labor.It also comes with the change of the social status of the employee.You can see a couple of situations in order to better understand what is frictional unemployment.Examples:
- dismissal in order to change the profession;
- a worker moves to another area and, accordingly, he must resign from the former place;
- the desire to get to another company in the same specialty.
Unemployment has social and economic consequences:
1) gross domestic product falls short of the possible;
2) training of employees with time lost.
During the natural rate of unemployment, you can talk about effective employment, which means a relationship between unemployment and employment.We can say that the market system is contraindicated as high unemployment and full employment.