Unemployment arises when there are fewer jobs than workers. Also, the employment of workers is reduced due to the fact that new, especially automated, technologies are being introduced.
A sharp increase in unemployment is observed during the economic downturn. This happens when the production volume is reduced and a lot of people get to the market, who turn out to be fired from their jobs.
To better understand the essence of this concept, you should consider the causes and types of unemployment.
So, the reasons are:
1) due to the fact that foodare produced in an arithmetic progression, and the population grows geometrically (but here there are "natural" regulation of numbers - epidemic, war, natural disaster);
2) losses in the workplace;
3) new unemployed (graduates, for example).
There is voluntary, forced, structural, cyclical, hidden, chronic and frictional unemployment. This is not all of its types, but most often allocated in the economy.
Voluntary unemployment implies dismissalemployee of his own free will. Forced is associated with a reduction in production, as a result of which part of the staff is without work. Structural unemployment occurs with the reduction of some industries and the emergence of others, when during the reorientation of firms and their transition to a new product, there is a need for retraining of staff or the reduction of some and the hiring of new ones.
Cyclical unemployment appears whenbusiness cycles are changing. It is constantly changing in scale and composition. Hidden represent artisans, farmers and workers who are not full-time employees. And chronic unemployment is constant and massive.
Frictional unemployment is a mismatch betweentime of worker transfers from one enterprise to another. It also happens when you move from one profession to another, from one industry to another. Frictional unemployment is, one might say, the most undesirable type of unemployment. People seek and expect work, move from one locality to another, move from one duty station to another.
Frictional unemployment is the absence of work,associated with the objectively necessary movement of labor. This also happens with a change in the social status of the employee. You can consider several situations in order to better understand what is frictional unemployment. Examples:
- dismissal for the purpose of changing professions;
- the worker moves to another locality and, accordingly, he has to resign from his previous place;
- the desire to get a job in another company for the same specialty.
Unemployment has social and economic consequences:
1) the volume of the gross national product lags behind the possible;
2) the qualification of the employee is lost with time.
During the natural rate of unemployment,talk about effective employment, which means some ratio between unemployment and employment. We can say that the market system is contra-indicated both by the high level of unemployment and by full employment.