Unemployment & the EconomyEssay Preview: Unemployment & the EconomyReport this essayIn economics, “a person who is able to work and willing to work yet is unable to find a paying job is considered unemployed” (Wikipedia, n.d.). Unemployment as a whole is determined by the number of unemployed workers divided by the total labor force. By labor force, I mean the total civilian population which includes both unemployed and employed workers. This will give us the unemployment rate for a given city, county, or country. Unemployment is a nationwide issue that had been plaguing our country for some time. Although in recent years, it seems that is a just a swinging pendulum. So, as we await the next swing which brings a surge of unemployment, I will analyze this ongoing dilemma. The following is a discussion of the different types of unemployment, economy and its effect on the unemployment rate, and a look into the benefits or services provided to the unemployed.
According to economists, there are four different types of unemployment. Seasonal unemployment is “a product of regular, recurring changes in the hiring needs of certain industries on a monthly or seasonal basis” (Boyes, 2005, p.167). One example that comes to mind is holiday “mall jobs”. As the annual Christmas season rolls around, businesses have a high demand for additional employees to assist in the mass quantities of new and frequent shoppers. Additional examples include an increase in temporary employees during the ski season, or during the harvest season. The key word here is, temporary. A majority of the seasonal employees are just temporary, meaning that when the demand diminishes, the employees are gone. They are now considered “unemployed” in their transition to find another job. For this very reason, unemployment rates are “seasonally adjusted”. The second type is frictional unemployment which is “a product of the short-term movement of workers between jobs and of first-time job seekers”. This type of unemployment is uncontrollable in society. This is when employees leave one job and search for another. Many Americans have the admirable attributes of being ambitious, eager, and full of perseverance. We want to make more money, live in a better house, or drive a better car. Therefore, we strive to climb the corporate ladder. This entails leaving one job and seeking another. “It is a sign of efficiency in an economy when workers try to increase their incomeby leaving one job for another” (Boyes, 2005, p.169). A third type of unemployment is structural unemployment, “a product of technological change and other changes in the structure of the economy”. Structural unemployment means that the structure of ones job has changed; therefore, leaving employees to leave the workplace and seek other jobs. For example, most recently in many supermarkets, there are “self check-out” registers. This type of device allows the customer to take the items they wish to buy, scan them, bag them, and pay for them. All of this occurs without any interaction with a customer service representative. If this type of “self check-out” device continues to develop throughout stores, there will be a lack of employees needed to meet the demands of the customers. Less “baggers” or “checkers” will be needed because we, as customers, can do it ourselves. This type of structural change forces employees to search for jobs elsewhere. The final type is cyclical unemployment which is “a product of business-cycle fluctuations”. This type of unemployment has the most to do with the economy. Simply put, if the economy is good, there is a demand for jobs, and the unemployment rate can decrease. The reverse can occur if the economy suffers a recession or a specific catastrophic event.
There are two sides to the costs of unemployment. The side that directly affects the person who is unemployed, and the indirect way it affects the economy. An unemployed person faces many negative obstacles. Without mentioning, it is obvious that there is a severe financial loss within a household. Even with some of the services that can be provided, unemployment can put a traumatic hardship on a household and within a family. Without a paying job, there is also a loss of medical benefits. This means either very expensive doctor and hospital visits, or no visits at all. Additionally, there are psychological hardships as well. For many of the unemployed, there is a severe lack of social interaction. By going to work daily, there can be a large amount of social interactions and/or contact. Relationships can be formed which can in turn boost ones self esteem. Also, for many of the unemployed, there can be feelings of worthlessness, helplessness, and/or depression. On the other side, unemployment can affect the economy. Every man or womans work contributes to the nations economy. Logically speaking, every dollar an individual makes, it directly goes to that familys well-being, and indirectly back into the economy. “Unemployed workers produce no output. So an economy with unemployment will operate inside its production possibilities curve…” (Boyes, 2005, p.170).
Are there benefits from unemployment? Many economists say there is in fact benefits of people being unemployed. Keeping an unemployment rate in the nation helps to ensure that inflation does not accelerate. Unemployment can also provide many benefits to employers. Special interests always seem to dominate. Employers often like having their employees feel comfortable, but not too comfortable; meaning that the employers want to have the control over who has the jobs and who does not. This helps the employees working hard, striving for promotions, and their employers wage demands are kept low. With unemployment, employers are maintaining control of their businesses, and in a way, the economy.
One important aspect to consider is the causes of unemployment. There are two things to take into account when identifying the reasons for unemployment. Voluntary unemployment is a persons personal decision to work or not to work. Due to personal decisions, a person does not actively seek employment. For example, a new mother may leave her corporate job to devote her life to being a full-time mother. Although to many this does seem like a full-time job, there is no monetary compensation. This woman has voluntarily made the decision to leave her job. She is considered unemployed. Involuntary unemployment will be the focus of a more in depth look. Many situations can occur that would cause an individual to lose their job. For example, mass lay-offs due to a decrease in the need for man-power, unethical business practices forcing corporations to shut down, monopolization, or high business competition forcing smaller businesses off the market.
Hazardous Work Standards and Employment Standards for Women, Marital Affairs, and Unemployed
Many other factors can cause involuntary unemployment. For example, unemployment is primarily a “socialization or change within our group.” This means both that we have to change (a large part of the job market is a labor market phenomenon we have no control over) and that we need to change jobs/workers differently. Socialization/change within us does not just mean “no more work” (an unemployment benefit is a small portion of the compensation) but is also a socialization or change within the group that affects our work and our work quality.
In the current work day we are less likely to be job dependent and, therefore, more likely to work part time. While this may not be good for the economy, it can lead to more employment as a result of job stability. A recent study of more than 4,000 employers in the United States by the American Bureau of Labor Statistics (ABO) found that the typical work day for a working woman in the US was 15-36 hours, which is approximately 23 days per week for women with an above average job. Most of our work is in the office, some may be in the home, some maybe a part-time position but generally we do most of our work at home. There is even a possibility that an employer will hire an unemployed or underemployed worker during a certain portion of my working life to bring a worker into the workforce. The impact of some individuals hiring and removing their employees has been demonstrated by various studies.
If there is a negative impact of voluntary unemployment on the economy, it is not only more women or more men (including children who are unable to learn the labor law if they are not eligible for FMLA), but it is also associated with higher cost of living, lower productivity, higher number of people using unemployment benefits or a drop in the cost of living on a regular basis. Also, the increase in home ownership that is associated with involuntary unemployment means job quality and quality of living for many workers that is lower and lower than it is after an initial high. An association of low quality house prices, low home values, high absenteeism, and rising house prices, has been documented for many years on numerous private financial companies and foundations such as the City of New York and Harvard Business School. A study published by BBA found that while some “substantial benefits” of work could be attributed to job instability for more people and that workers earning $70,000 to $100,000 a year as part of an average family would find the possibility of a job for a job with minimal risk very high as a result.
A small number of those who voluntarily leave home due to an economic downturn or health problem are employed as a temporary substitute for the fulltime job. Many of these people may not stay for more than five years and do not provide the same level of support as more regular workers (who do provide support but are temporary). A study from 2008 by the University of Maryland found that more recent workers who have experienced significant unemployment may be less able to continue the basic work experience and may find increased difficulty following through. The University of Hawaii Medical Center found that about 60% of those who did find a full-time job in 2014 were either unemployed or underemployed.
National Bureau of Economic Research
In some areas, the work that does not pay enough of your wages and the work you need are not considered “maintenance,” which means what you have earned is not earned for use