More about unemployment
This week I want
to talk more about unemployment. From economist, we have three type of unemployment,
cyclical unemployment, frictional unemployment and structural unemployment. Let
me explain this with more detail.
Cyclical unemployment:
The picture
above show the relationship between unemployment and percent change in real
GDP. They tend to move in the opposite direction which is make sense because
when real GDP is low which is mean the production in that country was
decreasing. That mean less people was employed to produce which show on the
picture is the increase on the unemployment. So we can say that some unemployment
is “cyclical”. So cyclical unemployment is
when GDP is not growing fast enough to keep everyone employed.
Frictional
Unemployment:
This type of
unemployment is the kind involved with entering the labor market for the first
time, like the fresh graduates, or moving from one job to another. There is
always some of this, but it doesn’t last long (<15 weeks) and is not a great
concern. Better information about available jobs and workers might reduce it a
little.
Structural
Unemployment:
I cannot find a
perfect definition for this but probably best thought of as a disequilibrium in
the labor market that does not go away, or goes away very slowly which we think
workers are the supply for the labor market and employers are the demand for
labor market. There are many reasons to cause structural unemployment. Changing
in demand, or changing in technology, or changing in foreign competition can
lead some jobs to disappear, others to be created
To help the
unemployment people, government provide “unemployment insurance” (A government
program that provides income to people who are laid off from a job). This help
some people a lot because government will provide half of their wage for 26
weeks.
However I don’t
think this is a good policy to help unemployment in a country side. I think this
will change incentives about job search or willingness to accept an offer. So
as a result, this probably increases the length of an unemployment spell to
some degree for some people. In my opinion, if government can provide more job opportunities
by invest more money on “public investment”, like building highway or dam so
that this can provide more jobs to unemployed people.
Click here for more information:
https://en.wikipedia.org/wiki/Unemployment
Images work well for the open post, especially the one with a woman crying in the picture, but maybe it will be better if you change the position of this image to the first paragraph, so that readers know you will talk about unemployment in this post.
ReplyDeleteThank you!But I still think the arrangement for the images work is suitable and make sence. For example, the one with a woman crying, it is the picture which I make an example about frictional unemplyment not the whole part of the artical.
ReplyDeleteThe first thing that caught my eye about this post was the images. I also found the post to have a good setup, thus it was easy to follow and read. I do agree with Rui's previous comment about the picture placing, but if you are set on it then just disregard my comment! I also like how you added personal opinion at the very end so I had a sense of what you were thinking about all the information presented.
ReplyDelete