Unemployment

Unemployment

Types
1. Frictional: people who are between jobs. Short term
2. Cyclical: related to the business cycle (recession means higher levels of umployment, expansion means lower levels)
3. Structural: unemployment related to industrialization or technological advances
4. Seasonal: unemployment throughout certain times of the year. Example: snow removers and construction workers
Causes
1. Voluntary: quit their jobs they are unhappy with
2. Moving: umployment due to moving to a different city or town
3. Lack of experience/New workers
4. Outsourcing of jobs: example could be call centers being outsourced to India
5. Raises in minimum wage
Solutions
1. Expansionary monetary policy: an example being lower interest rates
2. Fiscal policy: example being cutting taxes or increasing spending
3. Employment programs
Impact
1. Individuals
  1. Low to no income
  2. Poorer health
  3. Lower demand for products
2. Businesses
  1. Lower demand for products
  2. Less wages/expenses, higher profits
3. Government
  1. Less taxes generated
  2. Social welfare payments increased
  3. People emigrate out of the country, less immigrants

Resource summary

	Created by John Huang about 7 years ago