Business

Unemployment

What is Unemployment?

Unemployment refers to those individuals who are not in employment and who are either in the process of moving to a new job or who are unable to find work. There can be voluntary unemployment as well as involuntary unemployment. The voluntary unemployment occurs when there are jobs available for the stated person but s/he is not willing to get employed at the prevailing wage rate. This is more common among fresh graduates and undergraduate who postpone their employments for studying purposes. The involuntary unemployment occurs when there are no jobs available for a specific person even though s/he is willing to work at the prevailing wage rate. Involuntary unemployment is common among school leaver who try to find a job to earn a living.

Types of Unemployment

  • Natural/Search Unemployment-

Search Unemployment occurs when people search for a better prospect job in terms of salaries and other employment benefits. As an example, underemployment among recently graduated fresh graduates searching for job while evaluating available vacancies can be identified. As soon as they get employed they move away from this category so that this can be named as a short term unemployment.

  • Seasonal Unemployment-

Seasonal unemployment occurs when there are fluctuations in demand for labour due to the changes in seasons. This is more common in agricultural industry where farmers are employed during one half of the year and during the other half of the year they are unemployed.

  • Frictional Unemployment-

This is situation where unemployment occurs due to the surplus of labor in one region and a deficit in another region. This is a short term situation and this can be easily eliminated by advertising and other ways of information sources. As an example if there is a shortage of trained teachers in Southern region of Sri Lanka and there is a surplus of labor in the Central region of Sri Lanka, this problem can be sorted out with the help of communication and transfers from surplus region to the deficit region.

  • Cyclical/ Demand Deficient Unemployment-

This is a situation where unemployment occurs due to the fluctuations in the trade cycle of an economy which is affected by the aggregate demand level. This type of unemployment is serious in nature where the government has to take necessary action to rectify the errors in the trade cycle. As an example, during an upswing (boom) of a trade or business cycle, aggregate demand increases resulting in greater unemployment. However, during the downswing (recession), the reverse occurs giving risk to unemployment.

  • Structural/ Technological Unemployment-

This can occur due to the change in the structure of an organization/economy due to change in technology. High level of office automation has resulted in structural unemployment where the organizations lay off employees with a redundancy payment due to the less need for human labor. As an example at a bank no of teller staff will be reduced due to the introduction of automated teller machines. (ATM)

Anti-Unemployment Policies by Government

  • Establishing job search centers in various part of the island to encourage job seekers and employers to meet and bargain.
  • Encourage private sector to advertise when there is a job vacancy.
  • Creating temporary job opportunities contracts/part time basis.
  • Impose minimum wage rates- This is where the government specify the minimum wage rate that has to be paid for employees of each field. Minimum wage can differ from industry to industry as well as from job to job. But this will encourage unemployeds to get employed and earn a living as they are guaranteed of a minimum wage.
  • Encourage growth in private sector-Government provides tax reliefs, reducing import duties and other incentives to the private sector who are willing to set up new employment opportunities in the economy.
  • Control the pace of change in the technology to control the level of structural unemployment.

Share this post

Related Posts

54 thoughts on “Unemployment”

  1. hanxlk says:

    Useful stuff.. Something to think about after the degree i guess 😉

    1. sasha says:

      I dnt think we will have to face this issue.. 😉

  2. sithira says:

    hmm.. good articles hajara keep it up.. 🙂

    1. sasha says:

      I will write more on things like flexible model and other management topics for MOP..

  3. sasha says:

    Keep reading.. We will be posting more on economics and related areas..

  4. Nicolas Carmichael says:

    Hah I””m actually the only reply to this great writing?

  5. amateri says:

    I found your website in Google few moments ago, and luckily, this is it I was looking for the last weeks, thanks

    1. sasha says:

      keep reading..

  6. Walter Camarena says:

    thanks to your ideas , i¡¯d adore to adhere to your weblog as usually as i can

  7. Joni Thimmesch says:

    The ideas you wrote on your encounters are well placed. This is an incredible blog!

    1. sasha says:

      hey.. thank you.. We will be adding more macro economics related articles in future.. Keep reading… 😀

  8. Mountain Bike says:

    I was wondering.. Can you reccomend me a good start level ebooks?

  9. Themes says:

    Good fill someone in on and this enter helped me alot in my college assignement. Thank you your information.

    1. sasha says:

      keep reading.. 😀

  10. Shine Lyrics says:

    I was very fantastic why i not see your blog before i will come back.

  11. hughesnet says:

    Great post.

  12. smallC says:

    Wow this is a great resource.. I’m enjoying it.. good article.

  13. Wilmington says:

    Excellent post!

  14. Wilmington de says:

    Thanks a lot for this, I appreciate the info

  15. Anonymous says:

    Considerably, the blog post is actually the greatest on this worthy topic. I concur with your decisions and will thirstily look forward to see your approaching updates. Saying thanks will not just be adequate, for the phenomenal lucidity in your writing. I will at once grab your feeds to stay informed of any updates. Delightful work and much success in your business endeavors! Have a nice day

  16. Massaglia says:

    I can’t figure out how to subscribe to the comments via RSS . I want to keep abrest of this, how do I do that?

  17. Slaugen says:

    Thanks for some quality thoughts there.

  18. Ema Eliot says:

    Properly mentioned. I never considered I’d agree with this opinion, but I’m starting to view points from a diverse view. I have to exploration much more on this as it appears really interesting. One particular issue I really don’t recognize although is how anything is related together.

  19. replica says:

    Really good info, I’ll definitely be back!

  20. Sheive says:

    Well I definitely enjoyed reading it. This tip procured by you is very effective for correct planning.

  21. Volker says:

    I were searching for this tips. You have covered them nicely.

  22. adri5223an says:

    Great info!

  23. begoodorbebad says:

    Superb Content, Top Notch, and User Friendly are the best way to describe this post, reading this motivates me.

  24. Baiotto says:

    This really is such a outstanding resource that you are delivering and also you give it away for totally free. I take pleasure in seeing sites that understand the value of offering a prime resource for free. I truly loved reading your post. Thanks!

  25. Pingback: ohio
  26. Rajwani986 says:

    I used to be in search of crucial info on this subject. The data was important as I’m about to launch my very own portal.

  27. Andrew says:

    Well I definitely liked studying it. This tip provided by you is very constructive for correct planning.

  28. Vallie Akbari says:

    Thanks, I’ve enjoyed reading this article!

  29. Breeden16000 says:

    I would like to thank you for your efforts you have made in writing this blog post. I am hoping the same good content from you in the future as well. In fact your creative writing abilities has inspired me to start my own blog. Really blogging is spreading its wings quick. Your content is a fine example of it.

  30. Francesco Marcelle says:

    I think I’m afraid now…………maybe not.

  31. MrJonnydoGood says:

    Superb Content, Top Notch, and User Friendly are the best way to describe this post, reading this motivates me.

  32. Easterbrook says:

    Great post! Nice!

  33. Geppert93 says:

    Have got to say you have some awesome stuff here. will definately come back to see more

  34. Clair Mccartt says:

    I enjoy your work , thankyou for all the interesting articles .

  35. Deneen Godfrey says:

    Greetings there! Very useful article! I am very thrilled that I was able to stumble upon your blog whilst searching Google. Thank you for this great article!

  36. Somrak says:

    Good read. Thank You.

  37. joulu 2010 says:

    Great job once again! I am looking forward for your next post:)

  38. Roselee Rule says:

    yeah I could not write that better.. lol jk! I was really impressed with your post and I must say, you are a pretty good writer my mate.

  39. Pilar Tatsuta says:

    I reckon something really special in this site.

  40. Simon Curry says:

    Hi, I wonder how you would feel if someone disagreed with you. Would you get offended? Or you are open to constructive criticism?

  41. dieta daneza says:

    I have beeing looking the Internet for this information and i wanted to say thanks to you for this post.

  42. Alice says:

    Hey, nice art i add your blog to my rss!

  43. Pingback: credit repair oh
  44. Angelique Pyanowski says:

    This post is in truth accommodating for somebody who has been having difficulties with this position. I have looked at a amount of resourcefulnesses but to no avail. I will keep reading

  45. Rosario Schwarzenbach says:

    Loving the info on this web site , you have done great job on the articles .

  46. ranidu says:

    Please fix your contact form

  47. LEONEA says:

    Hmm!really interesting to read and get more info on unemployment,am a development practitioner.Thank u a lot

  48. pravi bhor says:

    at first , thank you for the writer who have written uncommon articles . really i am very happy with reading this material.

Comments are closed.