define unemployment essay

Unemployment Essay

500+ words essay on unemployment.

Unemployment is a serious problem among young people. There are thousands of people who do not have any work to do and cannot find work for themselves. Unemployment refers to the situation where a person wants to work but cannot find employment in the labour market. One of the major reasons that contribute to unemployment is the large population of India and the limited availability of resources. In this essay on unemployment, we will discuss all these issues responsible for unemployment in India and how we can overcome this problem. Students must go through this unemployment essay to get ideas on how to write an effective essay on the topic related to unemployment. Also, they can practice more CBSE essays on different topics to boost their writing skills.

Unemployment is measured by the unemployment rate, defined as the number of people actively looking for a job as a percentage of the labour force. The unemployment rate for the year 2013-14 in rural India was 4.7%, whereas it was 5.5% for urban India. In the short term, unemployment significantly reduces a person’s income and, in the long term, it reduces their ability to save for retirement and other goals. Unemployment is a loss of valuable productive resources to the economy. The impact of job loss in rural and regional areas flows through the local community, damaging businesses.

Reason for Unemployment

An unemployed person is one who is an active member of the labour force and is seeking work but is unable to find any work for himself. There are multiple reasons behind the unemployment of a person. One of them is the slow economic growth, due to which jobs in adequate numbers are not created. Excessive dependence on agriculture and slow growth of non-farm activities also limit employment generation. Unemployment in urban areas is mainly the result of substantial rural migration to urban areas. This has also resulted in a labour workforce in cities. The lack of technology and proper machinery has also contributed to unemployment.

The present educational system is based on theoretical knowledge instead of practical work. Thus, it lacks the development of aptitude and technical qualifications required for various types of work among job seekers. This has created a mismatch between the need and availability of relevant skills and training. This results in unemployment, especially among the youth and educated people with high degrees and qualifications. Apart from it, the lack of investment and infrastructure has led to inadequate employment opportunities in different sectors.

Steps to Eliminate Unemployment

Various strategies and proposals have been implemented to generate employment. Many Employment programmes and policies have been introduced and undertaken to boost self-employment and help unemployed people engage in public works. The Government of India has taken several policy measures to fight the problem of unemployment. Some of the measures are the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Skill Development Mission, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Regional Rural Banks (RRBs).

Despite the measures taken by the government, India remains a country experiencing severe unemployment problems. It can be resolved by imparting education in such a way that youth get the necessary skills so as to get employment easily. Setting up various vocational training and vocational courses for undergraduate and postgraduate students will help in finding employment for youth. The government needs to emphasise these courses at the primary level and make them a compulsory part of the curriculum to make students proficient in their early stages of life. Career counselling should be provided within schools and colleges so that students can choose a better career option based on their interests and ability. Government should create more job opportunities for the youth and graduates.

India is a fast-growing economy. There is an enormous scope for improvement in the unemployment sector. The various measures and steps taken by the government to increase the employment rate have succeeded to a great extent. The widespread skill development programmes have gained popularity across the nation. With better enforcement of the strategies, the employment level can be significantly improved. Although, we have to go a long way before we can say that all the people in India will get employment.

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Frequently Asked Questions on Unemployment Essay

Is unemployment still an existing problem in india.

Yes, unemployment is still a serious issue in our country. Steps need to be taken by the government and also by the youngsters in India to improve this situation.

Is it necessary for schoolchildren to be informed about unemployment?

Students at this young age should definitely be informed about this topic as it will motivate them to study and aim for higher scores in exams.

What points are to be added to an essay topic on Unemployment?

Add details about different age groups of people suffering from this state of employment. You can focus on the fact that poverty is an indirect reason for unemployment and vice-versa. Then, suggest steps that can be taken to bring about an improvement in education and increase the percentage of literacy.

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What Is Unemployment?

Understanding unemployment.

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

• What Is Unemployment? Causes, Types, and Measurement CURRENT ARTICLE
• Termination of Employment
• Unemployment Claim
• Unemployment Compensation
• Severance Pay
• Severance Agreements
• Negotiating Severance
• Preparing for a Layoff
• Unemployment Insurance
• Applying for Unemployment Insurance
• Who Doesn't Get Unemployment Insurance?
• Private Unemployment Insurance
• Paying Your Bills When You're Unemployed
• 401(k) Withdrawals and Unemployment
• COBRA Health Insurance Coverage
• Medical Bills
• When Unemployment Benefits Run Out
• Unemployment Rate
• Calculating the U.S. Monthly Unemployment Rate
• Highest and Lowest Rates in the World
• Understanding the Employment Report
• U3 vs. U6 Unemployment Rate
• Participation Rate vs. Unemployment Rate
• What The Unemployment Rate Doesn't Reveal
• The Unemployment Rate Affects Everybody
• How Inflation and Unemployment Are Related
• Minimum Wage and Unemployment
• Cost of Unemployment to the Economy
• Policies to Decrease Cyclical Unemployment
• Inflation and Unemployment Correlation
• Downside of Low Unemployment
• Frictional vs. Structural Unemployment
• Structural and Cyclical Unemployment
• Cyclical Unemployment
• Disguised Unemployment
• Employment-to-Population Ratio
• Frictional Unemployment
• Full Employment
• Labor Force Participation Rate
• Labor Market
• Natural Unemployment
• Structural Unemployment

Unemployment refers to a situation where a person actively searches for employment but is unable to find work. Unemployment is considered to be a key measure of the health of the economy. The most frequently used measure of unemployment is the unemployment rate. It's calculated by dividing the number of unemployed people by the number of people in the labor force.

Key Takeaways

• Unemployment occurs when workers who want to work are unable to find jobs.
• High rates of unemployment signal economic distress while extremely low rates of unemployment may signal an overheated economy.
• Unemployment can be classified as frictional, cyclical, structural, or institutional.
• Unemployment data is collected and published by government agencies in a variety of ways.
• Many governments offer unemployed individuals a small amount of income through unemployment insurance, as long as they meet certain requirements.

How is Unemployment Defined?

Unemployment is a key economic indicator because it signals the ability (or inability) of workers to obtain gainful work and contribute to the productive output of the economy. More unemployed workers mean less total economic production.

The unemployment definition doesn't include people who leave the workforce for reasons such as retirement, higher education, and disability.

Sign of Economic Distress

Unemployed workers must maintain at least subsistence consumption during their period of unemployment. This means that an economy with high unemployment has lower output without a proportional decline in the need for basic consumption.

High, persistent unemployment can signal serious distress in an economy and even lead to social and political upheaval.

Sign of an Overheating Economy

A low unemployment rate, on the other hand, means that the economy is more likely to be producing near its full capacity, maximizing output, driving wage growth, and raising living standards over time.

However, extremely low unemployment can also be a cautionary sign of an overheating economy, inflationary pressures, and tight conditions for businesses in need of additional workers.

Categories of Unemployment

While the definition of unemployment is clear, economists divide unemployment into many different categories. The two broadest categories are voluntary and involuntary unemployment. When unemployment is voluntary, it means that a person left their job willingly in search of other employment. When it is involuntary, it means that a person was fired or laid off and must now look for another job.

Types of Unemployment

Voluntary and involuntary unemployment can be broken down into four types. We highlight them below.

This type of unemployment is usually short-lived. It is also the least problematic from an economic standpoint. It occurs when people voluntarily change jobs. After a person leaves a company, it naturally takes time to find another job. Similarly, graduates just starting to look for jobs to enter the workforce add to frictional unemployment.

Frictional unemployment is a natural result of the fact that market processes take time and information can be costly. Searching for a new job, recruiting new workers, and matching the right workers to the right jobs all take time and effort. This results in frictional unemployment.

Cyclical unemployment is the variation in the number of unemployed workers over the course of economic upturns and downturns, such as those related to changes in oil prices. Unemployment rises during recessionary periods and declines during periods of economic growth.

Preventing and alleviating cyclical unemployment during recessions is one of the key reasons for the study of economics and the various policy tools that governments employ to stimulate the economy on the downside of business cycles.

Structural unemployment comes about through a technological change in the structure of the economy in which labor markets operate. Technological changes can lead to unemployment among workers displaced from jobs that are no longer needed. Examples of such changes include the replacement of horse-drawn transport with automobiles and the automation of manufacturing.

Retraining these workers can be difficult, costly, and time-consuming. Displaced workers often end up either unemployed for extended periods or leaving the labor force entirely.

Institutional Unemployment

Institutional unemployment results from long-term or permanent institutional factors and incentives in the economy. The following can all contribute to institutional unemployment:

• Government policies , such as high minimum wage floors, generous social benefits programs, and restrictive occupational licensing laws
• Labor market phenomena, including efficiency wages and discriminatory hiring
• Labor market institutions, such as high rates of unionization

Many governments offer unemployment insurance to certain unemployed individuals who meet eligibility requirements.

How to Measure Unemployment

The U.S. government uses surveys, census counts, and the number of unemployment insurance claims to track unemployment.

The U.S. Census conducts a monthly survey called the Current Population Survey (CPS) on behalf of the Bureau of Labor Statistics (BLS) to produce the primary estimate of the nation’s unemployment rate. This survey has been done every month since 1940.

The sample consists of about 60,000 eligible households. That translates to about 110,000 people each month. The Census changes a quarter of the sampled households each month so that no household is represented for more than four consecutive months. This is meant to strengthen the reliability of the estimates.

Many variations of the unemployment rate exist, with different definitions of who is an unemployed person and who is in the labor force.

The BLS commonly cites the U-3 unemployment rate (defined as the total unemployed as a percentage of the civilian labor force) as the official unemployment rate; however, this definition does not include discouraged unemployed workers who are no longer looking for work.

Other categories of unemployment include discouraged workers and part-time or underemployed workers who want to work full-time but, for economic reasons, are unable to do so.

History of Unemployment

Although the U.S. government began tracking unemployment in the 1940s, the highest rate of unemployment to date occurred during the Great Depression, when unemployment rose to 24.9% in 1933.

Between 1931 and 1940, the unemployment rate remained above 14% but subsequently dropped down to the single digits. It remained there until 1982 when it climbed above 10%.

In 2009, during the Great Recession, unemployment again rose to 10%. In April 2020, amid the COVID-19 pandemic, unemployment hit 14.8%. As of August 2024, the unemployment rate was 4.2%.

What Are the Main Causes of Unemployment?

There are many reasons for unemployment. These include recessions, depressions, technological improvements, job outsourcing, and voluntarily leaving one job to find another.

What Are the 3 Types of Unemployment?

Today's economists point to three main types of unemployment: frictional, structural, and cyclical. Frictional unemployment is the result of voluntary employment transitions within an economy. Frictional unemployment naturally occurs, even in a growing, stable economy as workers change jobs.

Structural unemployment can produce permanent disruptions due to fundamental and permanent changes that occur in the structure of the economy. These changes can marginalize a group of workers. They include technological changes, a lack of relevant skills, and jobs moving overseas to another country. Cyclical unemployment relates to the loss of jobs that occurs during changes in business cycles.

What Is the Strict Definition of Unemployment?

The official unemployment definition comes from the Bureau of Labor Statistics, which states that "people are classified as unemployed if they do not have a job, have actively looked for work in the prior four weeks, and are currently available for work."

Unemployment is when an individual who is not employed and is seeking employment, cannot find work. Unemployment is a key indicator of the health of an economy. A low unemployment rate represents a strong economy while a high unemployment rate represents a weak economy.

U.S. Bureau of Labor Statistics. “ How the Government Measures Unemployment ."

U.S. Bureau of Labor Statistics. " Concepts and Definitions (CPS) ."

U.S. Bureau of Labor Statistics. " Alternative Measures of Labor Underutilization for States, 2023 Annual Averages ."

U.S. Bureau of Labor Statistics. “ Table A-15. Alternative Measures of Labor Underutilization .”

U.S. Census Bureau. " U.S. Census Bureau History: The Civilian Conservation Corps, 1933-1942 ."

U.S. Census Bureau. " Chapter D, Labor: Labor Force (Series D 1-682) ." Page 135.

Federal Reserve Bank of St. Louis, FRED. “ Unemployment Rate .”

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Home — Essay Samples — Economics — Unemployment — Understanding Unemployment: Types, Causes, and Solutions

Understanding Unemployment: Types, Causes, and Solutions

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Words: 792 |

Published: Feb 12, 2024

Words: 792 | Pages: 2 | 4 min read

Unemployment

• Hidden unemployment: This refers to cases of unemployment that are not officially recorded. Many instances of unemployment go unreported, and government statistics do not accurately represent the true extent of the problem.
• Cyclical unemployment: This type of unemployment occurs as a result of fluctuations in the economy. During periods of economic downturn, there is a decrease in job opportunities, leading to a rise in unemployment rates.
• Seasonal unemployment: Some jobs are only available during specific seasons and are not available year-round. Individuals working in such seasonal jobs are considered unemployed during the off-season (Abbot, 2010).
• Long-term unemployment: This refers to individuals who have been unemployed for an extended period, usually six months or more. Long-term unemployment can have severe consequences for individuals and society as a whole.
• Underemployment: Underemployment occurs when individuals are employed in jobs that do not fully utilize their skills and qualifications. They are often working in positions below their educational or experiential level.
• Hardcore unemployment: This type of unemployment is caused by personal reasons such as mental, psychological, or physical barriers that prevent individuals from securing employment.
• Structural unemployment: Structural changes in the economy, such as technological advancements or shifts in industries, can lead to job losses and a reduction in work opportunities. This type of unemployment is referred to as structural unemployment.
• Frictional unemployment: Frictional unemployment occurs when individuals become unemployed due to conflicts or incompatibility between two different jobs or occupations.
• Economic growth: Economic growth can have both positive and negative effects on unemployment. While economic growth indicates a thriving economy, it can also lead to a decrease in employment opportunities. As the economy grows, certain industries may become obsolete, resulting in job losses.
• Technology: Technological advancements often lead to job displacement as machines and automation replace human labor. This trend is particularly evident in industries where capital-intensive mechanisms are used, making it more cost-effective to employ machines than humans.
• Seasonal fluctuations: Certain industries, such as agriculture and tourism, experience seasonal variations in demand. During off-peak seasons, workers in these industries may face unemployment.
• Microeconomic policies: Changes in microeconomic policies can impact employment levels. The implementation of new policies may lead to economic uncertainty, causing businesses to reduce their workforce or delay hiring.
• Constraints in economic growth: Economic constraints and uncertainties can discourage companies from hiring new employees. During periods of economic downturn, companies may lay off staff to cut costs.
• Abbot, L. (2010). Theories of the Labour Market and Employment: A Review. Washington: Industrial Systems Research.
• Harris, N. (2001). Business economics: theory and application. London: Butterworth-Heinemann.
• Hooks, G. (2003). Unemployment: Causes and Solutions. New York: Routledge.
• Symes, E. (1995). Unemployment: A Social Analysis. London: Routledge.

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Unemployment Essay

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Introduction

Unemployment can be defined as the condition where citizens of a country are jobless and have in the recent past been involved in searching work without a success. Unemployment rate can be defined as the prevalence of unemployment opportunities in a country. The unemployment index is calculated by dividing the number of unemployed individuals by the number of individuals in the labour force (Arestis & John 15).

I have chosen the unemployment situation because of the increasing and prevalent unemployment rates in various countries.

Recent statistics indicate that, the rate of unemployment is on the increase and there is a lot of information to cover the complex area of unemployment. There are various reasons which cause unemployment in a country. The following are some of the reasons that cause unemployment rate in a country (Arestis & John 20).

• Advances in new technologies. New technologies to a large extent replace the human labour force which renders most human beings as unemployed.
• Population increase. The level of unemployment is believed to go up as population in a country increases. Increase in population leads to an increased pressure on the available resources. These limited resources are few and cannot accommodate the increasing demands of the population
• National policies. Some countries have stringent national policies that favour the increase in the unemployment levels in a country. These national policies will always restrict the participation of certain gender groups in specific employment sectors. For example, some countries restricts the participation of women in many employment sectors especially the building, and construction sector.
• Political environments also play a major role towards increasing the rate of unemployment. Political environments that increase the rate of unemployment are quite dominant especially in the developing countries. Such environments will enhance political vices such as nepotism and corruption which undermines the possibility of having fair distribution of employment opportunities to citizens.
• Economic depression. Economic depression is a form of economic recession that is long-term which is characterized by a downturn in the various economic activities in a country.

In analyzing this complex situation of unemployment, it is of vital importance to consider the application of various system analyzing tools such as “tools, methods, methodology and many techniques”. This will make the analysis of the complex situation being analyzed to be understood easily.

In my research I will analyze the complex process of unemployment with the aim of creating a sustainable environment in the employment sector.

The research will encompass the various causes of unemployment rates, the challenges being encountered in the process of reducing unemployment rates. The research will critically analyze the various types of unemployment and, the mechanisms which can be adopted in order to reduce the prevalent rates of unemployment.

Unemployment is a complex problem facing many countries presently. The process of reducing unemployment rates can be a daunting process fraught with disappointments. As a summary of the major findings of the research, the major cause of unemployment is lack of information among citizens, and poor governance policies in a country (Arestis & John 30).

Various citizens are ignorant on how to effectively utilize the available natural and human resources to create employment. They lack a sense of creativity which could possibly create employment opportunities. Also, most citizens are ignorant on how to effectively participate in democratic governance process.

This ignorance eventually creates autocratic governance regimes which fosters nepotism and corruption. These political vices reduce the availability of employment opportunities in a country, leading to unemployment (Arestis & John 15).

One key requirement of a good system practitioner is the ability of the system practitioner to apply the various models, methods and theories of system practitioner into the real life.

My undertaking of this project will assist me to apply the various system practitioner concepts learnt in class to the real life complex scenario of unemployment (Jacques & Stephen, 1994, pg. 21). In analyzing the complexity associated with unemployment, I will consider the various theories of complex management which I will discuss along with the development of this paper.

Applying hard systems method

Before analyzing the complex process of unemployment, it is important to make a distinction between hard and soft systems. Hard systems can be defined as those problems that deal with the “how” questions. For example, the question of how to increase the rate of employment is an example of a hard problem.

A hard problem is always characterized by the fact that there is a distinct solution, and there are a number of defined goals that are well defined which should be accomplished. On the other hand, a soft system is a problem that encompasses both the “how” and “what” questions (Jacques & Stephen, 1994, pg. 27)

The complex process of unemployment could be well analyzed using the hard system method of approach. The hard system method tries to analyze a complex problem through many stages which will be discussed in this paper.

There are various advantages that are associated with the use of the hard system methodology of concept analysis. The following are some of the advantages of using the hard system method (Jacques & Stephen, 1994, pg. 35)

• It provides a deeper understanding and analysis of the problem of unemployment and answers the question of how to mitigate the unemployment problem.
• Hard system analysis provides answers to other complex problems related to unemployment like how to use technology to increase the rate of employment.

The following diagram indicates the application of hard system in the analysis of unemployment.

The above diagram indicates the various processes that will be undertaken in the analysis of the unemployment problem.

Stage 1. System description

System description will always indicate the current position and status of the problem being analyzed. Currently we are experiencing a high rate of unemployment which is characterized by the increasing population rate. The world population is estimated at 7 billion people.

The available limited employment resources are not sufficient to carter for the demands of the 7 billion individuals. This eventually piles up pressure on the resources that could be used to create employment opportunities, hence leading to an increased level of unemployment (Steger, Maznevski & Wolfgang 39).

The following table illustrates the world population by continent by 2011.

The alarming increase in the level of unemployment creates a need for analyzing the complex concept of unemployment with the aim of unmasking the strategies to be adopted in order to reduce unemployment rates (Arestis & John 55).

The following table indicates the world top ten countries by unemployment rate

The above data directly underpins the fact that unemployment is a complex prevalent issue. If much is not done to contain the issue, then, the issue will become out of control and cause adverse effects to the limited human, and natural resources available (Arestis & John 60).

Stage 2. Identification of constraints and objectives

The main objective of this sturdy is to identify the various causes of unemployment and any relevant measure that can be adopted to mitigate the problem of unemployment. Also, the sturdy is aimed at identifying the reasons as to why there is a huge gap between the unemployment rates in developed countries and the developing countries (Steger, Maznevski & Wolfgang 40).

The major projected constrain is the political environments and government policies and ideologies governing the utilization of resources, and the creation of employment opportunities.

Stage 3. Generation of routes to objectives

• Governments and relevant stakeholders should ensure that, there is gender equity and equality in the allocation of employment opportunities.
• Governments should adopt various strategies that will involve the citizens in the creation of employment opportunity for self-sustainability. A self-sustenance economy should be adopted which can be achieved through promotion of innovation and creativity.
• Removal of political and governance ideologies that promote nepotism, and corruption.
• Creation of public awareness and increased public participation in the governance process.

Stage 4. Formulating measures for performance

Measures of performance will measure to what extent has the research objectives been met. In order to measure the performance, the unemployment index will be recorded for the next five years after the activities stipulated in the routes to objectives have been undertaken.

The unemployment index obtained will then be compared to unemployment index done before undertaking this research. The comparison will give vital information as to whether there is been an improvement in the unemployment index after the adoption of the routes to objectives (Zimmer & Jake 44).

Stage 5. Modeling

The modeling process will involve those activities that are geared towards determining the outcomes of the research (Zimmer & Jake 51). In order to identify the outcomes, a survey will be carried out after every year for the next five years to find out the rate of unemployment.

This will be calculated by dividing the number of employed individuals by the number of unemployed individuals. The index obtained will then be compared in order to determine whether there is an improvement or a decline in the unemployment rate (Arestis & John 31).

Stage 6. Evaluation

The evaluation stage is the most important stage in the analysis of the complex issue. Evaluation will involve the analysis of the outcomes obtained from the modelling stage. The evaluation will involve the analysis of the disparities that will be recorded in the research.

This will involve the sturdy of what factors are causing the disparity and how to re-align and reconfigure the process routes in order to achieve the research objectives. Evaluation process might also include the prototyping technique where the routes are tested, and retested in order to determine their viability before being fully implemented (Zimmer & Jake 71).

Stage 7. Selecting the best routes to objectives

After the evaluation process, the best route towards achieving the objectives should be selected. The route chosen should ensure that the research objectives have been met to a large extent. In the analysis of unemployment, the best route that was identified was the creation of awareness and involving the individuals in the governance process (Steger, Maznevski & Wolfgang 59).

This route will increase the level of democracy in a country hence creating equal employment opportunities for both women and men. Also, creating public awareness will ensure that citizens are well equipped with knowledge of how to effective utilize resources and create employment opportunities.

Also, public participation in the governance process will ensure that the governance policies adopted foster democracy which is a key ingredient towards reducing the rate of unemployment (Arestis & John 75).

Stage 8. Implementation of the selected routes

The implementation process will involve the process of adopting and enrolling the best selected route. In the case of unemployment, the selected route of creating awareness and increasing public participation in the governance process will be adopted.

Creating awareness will involve conducting of seminars to enlighten the public on how to effectively use the available resources, and how to create employment opportunities through innovation (Steger, Maznevski & Wolfgang 69).

Public participation in the process of policy formulation will be achieved through promotion of civic education among citizens on how to carefully vote and chose leaders with integrity.

Also, the civic education will be aimed at increasing public participation in government related projects, and governance processes starting from the grassroots government structures. Also, the civic education will aim at educating citizens on how they can get access to public funds and amenities.

Stakeholders involved

Stakeholders can be described as those people who are in one way or the other affected by the problem of unemployment. Also, stakeholders in one way or the other affect the entire problem of unemployment. Stakeholders can negatively or positively be affected by the unemployment concept.

On the other hand, stakeholders can positively or negatively influence the prevalence of unemployment concept (Jacques & Stephen, 1994, pg. 75)

The following tables indicates a summary of the how stakeholders are affected/affect the unemployment concept

Ethicality statement

As a system practitioner I fully commit myself to the various ethical guidelines that should be followed whenever undertaking any research work. I will consider the following ethical consideration I my research undertaking:

• The data collected will be solely used for the purpose of the research, and no client data will be used for any other purposes not stipulated in the research.
• The clients will be fully informed on the purpose of the research, and the duration the research is going to take.
• The participation of subjects in the research will be voluntary, and out of consent. Where approval is required, then, the relevant approving bodies will be sought.

Conclusion and recommendations

In conclusion, it is evident from the research that unemployment is a complex issue that can be solved abstractly. With the increasing levels of unemployment, much has to be done in order to mitigate and reduce the rate of unemployment. This calls for public awareness, and participation in the entire process of creating employment. Such a complex issue should not be entrusted in the hands of greedy and selfish leaders.

Project log

The entire project will be spread over a period of six weeks with the first two weeks dealing with the preparation process and the last four weeks dealing with the data collection and analysis. The five weeks have been broken into three phases.

The following table indicates the project log phases.

Week 1 and week 2

During the first two weeks, I was involved in the process of consulting my colleagues and tutor to try and sought out their opinion about the topic. This gave a chance to discuss the various available methodologies that could be used in the sturdy. Also, this gave a chance to identify whether unemployment is a complex process or not.

Also, during the first week, I was able to undertake a literature review in order to determine what other researchers have done about the unemployment concept. The literature review sufficed me with relevant information about the unemployment concept.

Also, the information obtained was useful in avoiding mistakes done by previous researchers. The literature review involved researching the relevant literature materials like the internet, books, journals, and articles. I also obtained a chance of visiting various libraries in order to find out more information about the unemployment concept.

Week 3, 4 and 5

Most of the research work was conducted during the third, fourth and the fifth week. Various data was collected about the unemployment rate of individuals. Also, clients were required to fill in a survey form and a questionnaire in order to determine the causes of unemployment. Also, the subjects were required to give their individual opinions about what could be done in order to reduce the rate of unemployment.

Various data collections methods were employed in the process of data collection which includes the following methods; survey forms, questionnaires, and interviews.

Subjects were required to fill in questionnaires which sought to find out what were the causes of unemployment and what could be done to reduce the unemployment rates. Subjects were also required to fill in a survey form to determine whether the government is doing much to contain the problem of unemployment.

A series of interviews were also conducted with the aim of finding more first-hand information about the problem of unemployment. A total of three interviews were conducted during the entire period of the project. The following are the interviews that were conducted during the time of research.

The sixth week of the research was purely dedicated to data analysis and the sturdy of the findings. The data collected was analyzed and compared to previous data that was collected by other researchers on the same subject. The data analysis stage involved the application of the hard system on the complex process of unemployment. Various stages of the hard system methodology were studied in respect to unemployment.

Also, the compilation of the results obtained was done on the sixth week. This was the last week of the project undertaking, and due consultation was made to ensure that the project is up to date and with the relevant requirements.

I also, spent some time with my project supervisor in order to discuss the application of TMA in the complex process of unemployment. My supervisor advice helped a lot in the development of the project in the sense that, the information I was given largely assisted in the ensuring the realization of the research objectives.

Summary of the project log

In this section of the report, I will cover a brief summary of what I have been able to undertake during my six weeks of undertaking the project.

Undertaking the T306 course has largely helped build more on the concept that I learnt in my previous course, T205-An approach to system thinking. Managing complexity has equipped me with knowledge of how to apply various managing complexity theories, systems, and methodology in analyzing complex situations.

During the first five weeks of my project undertaking, I was extensively involved in the process of data collection and literature review. This introduced me to a number of literature and concept regarding the problem of unemployment. It also introduced me to a wide range of knowledge regarding data collection methods like interviews, questionnaires, and surveys.

The last week of the project was dedicated to data analysis. During this period of data analysis, various data analysis techniques were employed to analyze the data. This introduced me to a wide range of scientific data analysis methods of analyzing data.

Client report

The major client in the above research is the unemployed citizen or individual. They are the ones who are largely affected by the rising unemployment rate. Most of the unemployed individuals or citizens have the common ideology that it is the responsibility of government and private sectors to create employment.

Such an ideology is wrong because the process of creating employment opportunities is neither a government responsibility nor the responsibility of the private sector. It is a collective responsibility that has to be done by the collaboration of the citizens, the private sector, and the government.

There are various forms of employment that currently exists. One can be self employed which means that, they are their own employers. This form of employment fosters renovation and a spirit of entrepreneurship among citizens. This spirit eventually promotes innovation and creativity which eventually creates employment opportunities.

Also, citizens should be made to understand that, democracy plays a major role towards creation of employment opportunities. Democracy ensures accountability and transparency towards the use of resources, hence creating avenues for more employment opportunities. On the other hand, corruption, nepotism, and violence lead to misuse of resources which eventually blocks avenues for creating employment opportunities.

In order to reduce the adverse effects associated with unemployment, citizens should engage in innovation and creative activities. This will enhance the proper utilization of resources and eventually creating employment opportunities. One major desirable aspect of a good economy is the ability to be self sustainable.

A self sustainable economy will ensure that citizens have the services and products they require. One way of ensuring a self sustaining economy is by having citizens engage in innovative and creative activities. Such activities will lead to specialization, and creation of more job, and employment opportunities.

Works Cited

Arestis, Philip & McCombie, John. Unemployment: Past and Present . Basingstoke: Palgrave Macmillan, 2009. Print.

Jaques, Elliott, and Stephen, Clement. Executive Leadership: A Practical Guide to Managing Complexity . Malden, Mass: Blackwell, 1994. Print.

Steger, Ulrich & Maznevski, Martha & Wolfgang, Amann. Managing Complexity in Global Organizations . Chichester, West Sussex, England: John Wiley & Sons, 2007. Print.

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Cause & Effect Essay: Unemployment

Unemployment is the one constant throughout history. Despite changing technology, the underlying principles of why unemployment occurs remain the same. It’s also what continues to this day. The three main causes of unemployment are economic conditions, new technology, and increasing populations.

Economic conditions are the main factor in unemployment. The 2008 economic crash caused unemployment to rise dramatically, and the same has been true of every economic slump throughout history. An economic crash causes businesses to fold and posts to disappear. If there isn’t enough money coming into a company, it can no longer afford to pay its employees.

Once a company fails to pay its employees it has no choice but to let them go. Sometimes, it reduces its size in waves of redundancies or it simply shuts down.

New technology also has an impact. As conventional tasks become more automated and more convenient, some employees find their posts obsolete. With no reason to continue paying them, they lose their jobs as the job simply disappears. It’s why the Swing Riots occurred in Britain during the 1830s. Workers fought against the introduction of threshing machines which would make many traditional jobs disappear.

In the 21st century, the main threats are robotics and increasingly intelligent computers. Professional filing systems which require teams of people to maintain are now on a single computer server controlled by a single person. This is the form of unemployment which happens during prosperous times when companies can afford to invest in new technologies.

Increasing populations often lead to unemployment at a slower rate. The numbers of unemployed have increased over the past few decades as the population has accelerated. To an extent, the increasing demand for goods and trade balances out the population increase, but businesses often fail to deal with the short-term consequences.

Initially, many young humans aren’t yet old enough to need the economy to enlarge itself. It will take at least 20 years before the economy needs to respond to growing demand. Children generally don’t figure in the size of the economy or the need for jobs, on a large scale. It’s only when they become adults things start to change.

And it doesn’t always keep pace with the number of adults in society. There are simply not enough employment roles for the number of applicants.

New technology and an increasing population generally go hand-in-hand. If technology remained the same the increasing population wouldn’t matter as the jobs would form naturally. The rescinding in the number of roles from multiple sides overwhelms the employment market and we finish with a shortfall in jobs.

Unemployment seems like a complicated issue as people attempt to take complicated formulae into account. Really, it’s caused by the same three things it has always been caused by. Poor economic conditions, new technological advances, and an increasing population have and always will continue to perpetuate the problem of unemployment.

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Unemployment

Definitions of Unemployment

• Unemployment Rate. This is the % of people in the labour force without a job but  registered as being willing and available for work
• Labour Force  Those people holding a job or registered as willing and able to work Therefore this is the number employed plus number unemployed (but actively seeking work)
• Participation Rate The % of the population of working age declaring themselves to be in the Labour Force. This will exclude groups such as long-term disabled, women bringing up children and students

The participation rate is a similar concept to that of ‘economically active’.

See also: definition of unemployment

UK Unemployment stats

• Latest UK unemployment stats
• EU unemployment

Revision notes on unemployment

• Costs of Unemployment
• Measuring Unemployment
• Causes of Unemployment
• Policies to reduce unemployment
• Phillips Curve
• Natural Rate of Unemployment

Causes of unemployment

See:  Causes of Unemployment

Unemployment Essays

Why is Eurozone unemployment higher than UK/US?

Trade off between unemployment and inflation

Is there a trade-off between unemployment and inflation?

Natural Rate of unemployment

• Explain what is meant by Natural Rate of Unemployment?

Types of unemployment

Costs of unemployment

• Should the main macroeconomic aim of the Government be full employment?
• Notes on Inflation
• Fiscal Policy
• Recovering from recession

Introduction to Unemployment

Chapter objectives.

In this chapter, you will learn about:

• How Economists Define and Compute Unemployment Rate
• Patterns of Unemployment
• What Causes Changes in Unemployment over the Short Run
• What Causes Changes in Unemployment over the Long Run

Bring It Home

Unemployment and the covid-19 pandemic: a complicated story.

It was the most abrupt economic change in the post-World War II era. Between March 2020 and April 2020, the U.S. unemployment rate increased from 4.4% to 14.8%. As a result of the COVID-19 pandemic, millions of people were left without work as businesses shut down and people stayed home and cut their spending, especially on restaurants, tourism, and travel. As confidence and spending were slowly restored, and as the situation with the virus steadily improved, unemployment began to tick down. By 2022, with the availability of vaccines and boosters and other improved health measures, things were better still, but the presence of dangerous variants prevented a full return to normal.

The COVID-19 pandemic had other effects on the labor market as well. Labor force participation—the rate at which people are employed or actively searching for work—declined and as of early-2022 remained lower than it was in 2019. Some were forced to stop working because of school and childcare closures. Others were concerned about how safe their workplaces would be in the middle of a global pandemic. And still others simply chose to retire early. Labor force participation remains a sore spot in the labor market's recovery.

These two statistics—unemployment and labor force participation—show how complicated the labor market can be. As the unemployment rate declined through 2021, the disappointing statistics on labor force participation show weak points. One day you may have read a headline about how easy it was to find a job, and the next day a headline would describe how difficult it was for employers to find workers. By the end of this chapter, you will be in a much better position to make sense of these events.

Unemployment can be a terrible and wrenching life experience—like a serious automobile accident or a messy divorce—whose consequences only someone who has gone through it can fully understand. For unemployed individuals and their families, there is the day-to-day financial stress of not knowing from where the next paycheck is coming. There are painful adjustments, like watching your savings account dwindle, selling a car and buying a cheaper one, or moving to a less expensive place to live. Even when the unemployed person finds a new job, it may pay less than the previous one. For many people, their job is an important part of their self worth. When unemployment separates people from the workforce, it can affect family relationships as well as mental and physical health.

The human costs of unemployment alone would justify making a low level of unemployment an important public policy priority. However, unemployment also includes economic costs to the broader society. When millions of unemployed but willing workers cannot find jobs, economic resource are unused. An economy with high unemployment is like a company operating with a functional but unused factory. The opportunity cost of unemployment is the output that the unemployed workers could have produced.

This chapter will discuss how economists define and compute the unemployment rate. It will examine the patterns of unemployment over time, for the U.S. economy as a whole, for different demographic groups in the U.S. economy, and for other countries. It will then consider an economic explanation for unemployment, and how it explains the patterns of unemployment and suggests public policies for reducing it.

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What Is Unemployment?

How Unemployment Works

Example of unemployment, types of unemployment, disadvantages of unemployment, frequently asked questions (faqs).

The Balance / Daniel Fishel

Unemployment refers to the number of people who are available and looking for work but who are unable to find jobs. Unemployment impacts not only individuals, but communities, regions, and the overall economy as well.

Key Takeaways

• Unemployment occurs when someone is able to work and wants to work but is unable to find employment. 
• The Bureau of Labor Statistics (BLS) specifically defines unemployed persons as those who don't have a job but are available for work and have looked for work in the past four weeks. 
• Unemployment on a national level is caused by a slowing economy. Competition in particular industries, advancing technology, and outsourcing can also cause unemployment. 
• Unemployment has both individual and broader economic consequences.

Economic slowdowns are the primary cause of unemployment on a national level. Businesses are forced to cut costs when the economy slows by reducing payroll expenses.

The COVID-19 outbreak created higher employment rates than the Great Recession of 2007 to 2009. In fact, during the first few months of the pandemic, they were actually closer to the unemployment rates experienced during the Great Depression. The history of recessions  shows that an increase in the unemployment rates has always accompanied them.

Competition in particular industries or companies can also cause unemployment. Advanced technology, such as computers or automation, can cause unemployment by replacing workers who normally handle tasks with machines.

There are several sub-types of unemployment. It's referred to as "structural unemployment" when technology replaces people and results in job loss.

Unemployment isn't evenly distributed among the population. The rate of unemployment can be higher or lower for certain groups, depending on multiple factors, including:

• Socioeconomic class

You're considered to be unemployed when you can work, and you want to work, but you can't find a suitable job. The term "unemployment" quantifies or measures a group of unemployed people. The U.S. Bureau of Labor Statistics (BLS) has a more specific definition: the number of people who don't have a job, have actively looked for work in the past four weeks, and are available for work.

The BLS also includes in  unemployment statistics people who are temporarily laid off and are waiting to be called back to their jobs.

The BLS reports unemployment statistics in its U-3 report, part of the monthly  jobs report . It measures unemployment through monthly household surveys referred to as the Current Population Survey (CPS). The CPS has been conducted every month since 1940. It was originally part of the government's response to the Great Depression, and it's been modified several times since then.

The BLS doesn't count residents of any institution as being unemployed, including prisons, jails, mental facilities, and homes for the aged. It doesn't count those on active military duty, either.

A major redesign of the CPS occurred in 1994. The questionnaire was revamped, and computer-assisted interviewing was used. Some of the labor force concepts were also revised.

The BLS doesn't count everyone who is jobless as being unemployed. It excludes those who haven't looked for work within the last four weeks. The BLS also removes them from the labor force, which includes both the employed and unemployed.

Most people who voluntarily leave the labor force do so because of:

• A disability that keeps them from working
• Family responsibilities
• Lack of need or interest in working

The BLS also doesn't include in the labor force those people who would like to work but aren't actively looking for work. They may have stopped looking due to school, health problems, transportation issues, or a lack of available jobs.

But the BLS does track these people in the U-6 unemployment rate. Some people call this the " real unemployment rate ." It includes those who have looked for work in the past 12 months, but not the past four weeks. The BLS identifies people in this group as "marginally attached to the labor force." " Discouraged workers " are a subset of the marginally attached. They've given up looking, because they don't think there are jobs out there for them.

Those younger than age 16 aren't included in the American labor force, even if they're working.

The consequences of unemployment are financially and emotionally destructive for individuals. Long-term unemployment can lead to financial instability or poverty, which can also cause physical and mental health problems.

The consequences can be harmful to the economy when unemployment rises above 5% or 6%. The economy loses one of its key growth drivers when that many people are unemployed: consumer spending . Workers have less money to spend until they find another job.

Lower consumer spending reduces business revenue, and this forces companies to cut more payroll to reduce their costs. It can contribute to a downward economic spiral.

Those who are unemployed long-term may find that their job skills no longer match the requirements of jobs being offered. This is called "structural unemployment." Many who are facing this type of unemployment are age 55 or older. This group may not be able to get good jobs, despite laws prohibiting age discrimination. They may get part-time or low-paying entry-level jobs to make ends meet until they can take early Social Security benefits at age 62.

It can deepen a  recession  or depression when high national unemployment continues.

Who counts as unemployed?

BLS says you are considered unemployed when you don't have a job, have actively looked for work in the past four weeks, and are available for work.

How does the BLS define the unemployment rate?

The unemployment rate is the percentage of the total labor force that is unemployed.

Pew Research Center. " Unemployment Rose Higher in Three Months of COVID-19 Than It Did in Two Years of the Great Recession ."

U.S. Bureau of Labor Statistics. " How the Government Measures Unemployment ."

U.S. Bureau of Labor and Statistics. " History of the Current Population Survey ."

U.S. Bureau of Labor Statistics. " How the Government Measures Unemployment ." Pages 2, 4.

Center for American Progress. " An Unequal Division of Labor ."

U.S. Bureau of Labor Statistics. " Alternative Measures of Labor Underutilization for States, 2021 Annual Averages ."

U.S. Bureau of Labor Statistics. " How the Government Measures Unemployment ," Page 4.

Board of Governors of the Federal Reserve System. " What Is the Lowest Level of Unemployment That the U.S. Economy Can Sustain? "

National Center for Biotechnology Information. " Unemployment Among Younger and Older Individuals: Does Conventional Data About Unemployment Tell Us the Whole Story? "

• 7 Causes of Unemployment 2 of 16

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Employment and Unemployment

Introduction

Definitions and basics.

Unemployment , from the Concise Encyclopedia of Economics

Each month, the federal government’s Bureau of Labor Statistics randomly surveys sixty thousand individuals around the nation. If respondents say they are both out of work and seeking employment, they are counted as unemployed members of the labor force. Jobless respondents who have chosen not to continue looking for work are considered out of the labor force and therefore are not counted as unemployed….

Full Employment: : Business Cycles , from the Concise Encyclopedia of Economics

Just as there is no regularity in the timing of business cycles, there is no reason why cycles have to occur at all. The prevailing view among economists is that there is a level of economic activity, often referred to as full employment, at which the economy theoretically could stay forever. Full employment refers to a level of production at which all the inputs to the production process are being used, but not so intensively that they wear out, break down, or insist on higher wages and more vacations. If nothing disturbs the economy, the full-employment level of output, which naturally tends to grow as the population increases and new technologies are discovered, can be maintained forever. There is no reason why a time of full employment has to give way to either a full-fledged boom or a recession….

Unemployment Insurance , from the Concise Encyclopedia of Economics

The United States unemployment insurance program is intended to offset income lost by workers who lose their jobs as a result of employer cutbacks. The program, launched by the Social Security Act of 1935, is the government’s single most important source of assistance to the jobless. A second goal of the program is to counter the negative impacts on the national economy, and especially on local economies, of major layoffs, seasonal cutbacks, or a recession. Unemployment benefits help sustain the level of income and hence the demand for goods and services in areas hard hit by unemployment. In short, unemployment insurance supports consumer buying power….

Welfare , from the Concise Encyclopedia of Economics

… in 1996, Congress passed and President Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act, which replaced AFDC with TANF. Under the new program, the federal government eliminated the entitlement to cash welfare, placed limits on the length of time families could collect benefits, and introduced work requirements. By law, a family cannot receive TANF benefits for more than a lifetime limit of five years, cumulative across welfare spells. Regarding work requirements, TANF mandated that at least 50 percent of recipients participate in “work” activities by 2002, with activities including employment, on-the-job training, vocational EDUCATION, job search, and community service….

New Keynesian Economics , from the Concise Encyclopedia of Economics

The primary disagreement between new classical and new Keynesian economists is over how quickly wages and prices adjust. New classical economists build their macroeconomic theories on the assumption that wages and prices are flexible. They believe that prices “clear” markets–balance supply and demand–by adjusting quickly. New Keynesian economists, however, believe that market-clearing models cannot explain short-run economic fluctuations, and so they advocate models with “sticky” wages and prices. New Keynesian theories rely on this stickiness of wages and prices to explain why involuntary unemployment exists and why monetary policy has such a strong influence on economic activity….

Labor Unions , from the Concise Encyclopedia of Economics

Many unions have won higher wages and better working conditions for their members. In doing so, however, they have reduced the number of jobs available….

In the News and Examples

Russ Roberts on the Least Pleasant Jobs . Podcast on EconTalk, April 21, 2008.

EconTalk host Russ Roberts talks about the claim that for capitalism to succeed there have to be people at the bottom to do the unpleasant tasks and that the rich thrive because of the suffering of those at the bottom. He critiques the idea that capitalism is a zero sum game where to get ahead, someone has to fall back. He also looks at the evolution of the least pleasant jobs over time and how technology interacts with rising productivity to make the least pleasant jobs more pleasant….

The Broken Window Fallacy , a LearnLiberty video.

Do natural disasters, terrorist attacks, and wars, create jobs? Prof. Art Carden answers this question, along with many others, in this video.

What’s behind the slow U.S. economic recovery from the recent recession? Mulligan on Redistribution, Unemployment, and the Labor Market . Podcast on EconTalk, December 3, 2012.

Casey Mulligan of the University of Chicago and the author of The Redistribution Recession, talks with EconTalk host Russ Roberts about the ideas in the book. Mulligan argues that increases in the benefits available to unemployed workers explains the depth of the Great Recession that began in 2007 and the slowness of the recovery particularly in the labor market. Mulligan argues that other macroeconomic explanations ignore the microeconomic incentives facing workers and employers.

Bhide on Outsourcing, Uncertainty, and the Venturesome Economy . Podcast at EconTalk.

Amar Bhidé, of Columbia University and author of The Venturesome Economy, talks with EconTalk host Russ Roberts about the role of entrepreneurship and innovation in a global economy. Bhidé argues that the worries about outsourcing and America’s alleged declining leadership in technology are misplaced. He argues that the source of prosperity is not technology per se but the application of technology to actual products that improve our lives and that the American venture system and labor market are very effective at the application of technology. The end of the conversation turns to the role of uncertainty in both venture capital and entrepreneurship but also to the role of financial institutions and financial innovation.

Ed Leamer on Outsourcing and Globalization . Podcast on EconTalk, July 09, 2007.

Is outsourcing good for America? How does foreign competition affect wages in the United States? Ed Leamer, professor of economics at UCLA, talks about the effects of outsourcing on wages, jobs, and the U.S. standard of living….

Minimum Wages , from the Concise Encyclopedia of Economics

Minimum wage laws set legal minimums for the hourly wages paid to certain groups of workers. In the United States, amendments to the Fair Labor Standards Act have increased the federal minimum wage from $.25 per hour in 1938 to $5.15 in 1997. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. Most noneconomists believe that minimum wage laws protect workers from exploitation by employers and reduce poverty. Most economists believe that minimum wage laws cause unnecessary hardship for the very people they are supposed to help….

Wages and Working Conditions , from the Concise Encyclopedia of Economics

CEOs of multinational corporations, exotic dancers, and children with lemonade stands have at least one thing in common. They all expect a return for their effort. Most workers get that return in a subtle and ever-changing combination of money wages and working conditions. This article describes how they changed for the typical U.S. worker during the twentieth century…. Surely the single most fundamental working condition is the chance of death on the job. In every society workers are killed or injured in the process of production. While occupational deaths are comparatively rare overall in the United States today, they still occur with some regularity in ocean fishing, the construction of giant bridges and skyscrapers, and a few other activities.

A Little History: Primary Sources and References

Great Depression , from the Concise Encyclopedia of Economics

A worldwide depression struck countries with market economies at the end of the 1920s. Although the Great Depression was relatively mild in some countries, it was severe in others, particularly in the United States, where, at its nadir in 1933, 25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Some people starved; many others lost their farms and homes…. By June 1937, the recovery–during which the unemployment rate had fallen to 12 percent–was over. Two policies, labor cost increases and a contractionary monetary policy, caused the economy to contract further. Although the contraction ended around June 1938, the ensuing recovery was quite slow. The average rate of unemployment for all of 1938 was 19.1 percent, compared with an average unemployment rate for all of 1937 of 14.3 percent. Even in 1940, the unemployment rate still averaged 14.6 percent.

Phillips Curve , from the Concise Encyclopedia of Economics

The Phillips curve represents the relationship between the rate of inflation and the unemployment rate…. At the height of the Phillips curve’s popularity as a guide to policy, Edmund Phelps and Milton Friedman independently challenged its theoretical underpinnings. They argued that well-informed, rational employers and workers would pay attention only to real wages–the inflation-adjusted purchasing power of money wages. In their view, real wages would adjust to make the supply of labor equal to the demand for labor, and the unemployment rate would then stand at a level uniquely associated with that real wage–the “natural rate” of unemployment….

John Maynard Keynes , biography from the Concise Encyclopedia of Economics

Keynes’s ideas took a dramatic change, however, as unemployment in Britain dragged on during the interwar period, reaching levels as high as 20 percent. Keynes investigated other causes of Britain’s economic woes, and The General Theory of Employment, Interest and Money was the result….

Advanced Resources

Related topics.

Productive Resources Business Cycles Inflation Roles of Government Insurance Price Controls, Price Ceilings, and Price Floors

• Unemployment’ Nature and Possible Causes Words: 856
• Unemployment, Its Types and Government Intervention Words: 1989
• Unemployment: Types And Factors Words: 1737
• Causes of Youth Unemployment Words: 1128
• Unemployment and Its Macroeconomic Implications Words: 572
• The Problem of the Unemployment Words: 1501
• Economics for Management. Unemployment in Spain Words: 1739
• Reduced Unemployment in the UK Words: 881
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• The US Fiscal Policy and Unemployment Rate Words: 1134
• Diabetes Type 1 and Type 2 and Its Causes Words: 844
• Unemployment and Political Regime Words: 2276
• The Impact of Unemployment on Crime Rates Words: 1427
• The Relationship Between Unemployment and Economic Growth Words: 298
• Frictional Unemployment and Hyperinflation Words: 562

Economics: Unemployment, Its Causes and Types

This essay sample explores solutions, types, and causes of unemployment. Read it to get ideas for your essay about unemployment.

Unemployment Essay Introduction

Unemployment, types of unemployment, causes of unemployment, conclusion for unemployment essay.

Unemployment has become a major problem in almost every society. The challenges posed by unemployment are both social and economical in nature. Under normal circumstances, unemployment leads to despondency since a section of society lacks ways of earning a living.

This affects not only the economic status of the society but also the political and social aspects. It is against this background that a lot of efforts are put in place so as to address the issue of unemployment. Job creation is one sure way of ensuring that unemployment is under control.

This involves concerted efforts to bring about opportunities to work through which income can be generated. However, unemployment is of different types, and a better understanding of the same is crucial in the event of finding a meaningful solution.

Furthermore, unemployment is caused by several factors which are responsible for the whole situation. The aim of this paper is to navigate through the light of unemployment, thoroughly analyzing the causes and types of the same.

Unemployment refers to a situation in which qualified people are seeking employment but remain unemployed. This is primarily due to the scarcity of job opportunities or other different causes. Unemployment, therefore, leads to a lack of a source of income, thus affecting the economic condition of the society. Unemployment takes different forms and shapes (Harris, 2001).

The condition of unemployment differs from society to society, depending on the factors responsible for the situation. This brings out the fact that unemployment does not occur in a uniform manner; it rather takes different forms depending on the various forces in the social, economic, and political arenas.

Unemployment is a major problem that needs to be addressed by all means. However, a better understanding of the causes and types of unemployment is necessary for the event of finding an appropriate solution to the whole situation.

Unemployment occurs in different forms. Under normal circumstances, the type of unemployment is denoted by the nature of factors that have brought about the situation. As a result, unemployment is categorized by forces that play a role in the creation of the situation (Hooks 2003).

Another important factor in the categorization of unemployment is the manner in which the situation occurs and for how long it occurs. In such a situation, certain forms of unemployment tend to be repetitive in nature, while others only take place once.

The seriousness of the unemployment problem also forms a good basis for its categorization. Under normal circumstances, unemployment is categorized in economic terms. Therefore the dynamics of economics play an important role in the whole scenario.

There are several types of unemployment that occur in different forms and are brought about by different situations and circumstances. The following are the types of unemployment;

• Hidden unemployment
• Cyclical unemployment
• Seasonal unemployment
• Long-term unemployment
• Underemployment
• Hardcore unemployment
• Structural unemployment
• Frictional unemployment

Hidden unemployment refers to cases of unemployment that are not represented in the official records of unemployment. This happens since many cases of unemployment are unreported, and statistics given by government agencies don’t represent them. Seasonal unemployment, on the other hand, refers to those jobs that are seasonal in nature.

These kinds of jobs only operate during certain times and not others (Abbot 2010). During the seasons, when the jobs are not on, the workers are considered unemployed. When there are certain structural changes in the status of the economy, there are kinds of changes that take place, which lead to loss of jobs and a reduction of opportunities for work.

This situation is referred to as structural unemployment. It is brought about by structural changes in the economy. Unemployment caused by personal reasons is called hardcore unemployment.

These reasons might be mental, psychological, or physical in nature. Individuals who engage in two different careers can find themselves unemployed due to the nature of their occupation. This kind of unemployment is called frictional unemployment. It is brought about by the conflict between two different jobs rendering people unemployed.

Unemployment is caused by several factors, and there is no single factor that is responsible for unemployment. As a result, there are a number of factors that combine to bring about a lack of opportunities and the fact of qualified people remaining unemployed (Symes 1995).

Fundamentally the causes of unemployment are economic in nature. As such, the plight of unemployment is brought about by factors that are inherently economic in nature. Economic forces and activities, to a large extent, determine the nature and cause of most unemployment problems. Also, factors that deal with labor and personnel are responsible for a large number of unemployment cases.

The following are causes of unemployment;

• Economic growth
• Microeconomic policies
• Constraints in economic growth

The process of economic growth has a lot of relevance to the plight of unemployment. Under normal circumstances, unemployment is an economic problem. The forces that bring about unemployment are economic in nature.

Economic growth, for instance, has a lot of significance to the whole situation of unemployment. The level of economic activity prevailing at any given moment has a lot of significance on the state of unemployment at the time.

During the process of economic growth, there is a trend that follows; this normally involves a decrease in employment opportunities. This automatically leads to a rise in the levels of unemployment. Therefore economic growth has a negative effect on the rate of unemployment in the economy. Technology also leads to high levels of unemployment; this is primarily due to the replacement of humans with machines.

With the increase in the innovation of technology, more tasks are performed by machines making it unnecessary to employ people. This makes people lose their jobs to machines since it becomes cheaper to use machines than employ people. Another factor in the same vein of technology is the use of the capital intensive mechanism. As a result, the jobs that can be performed by people are done by machines (Stretton 1999).

The role played by policies of microeconomic nature in the creation of unemployment in society cannot be underestimated. These policies normally lead to a sudden change in the economic environment making certain adjustments that lead to unemployment.

This happens when new policies are set out in place. During the initial times of implementation, the economic environment responds with fear and panic, thus causing a sudden disappearance of opportunities for career.

Constraints in economic growth lead to uncertainty among various economic players making the chances of unemployment to reduce. There is usually rampant unemployment during times of economic uncertainty. Two reasons, first, most companies won’t employ anyone during the times of economic constraints. Secondly, many companies lay off their staff during times of slackness and low economic activity.

Unemployment is a problem that is economic in nature. Most of the factors that bring about unemployment have an economic connotation. However, the effects of unemployment go beyond the economic arena. There are several types of unemployment that are grouped according to various factors that cause the plight.

Furthermore, unemployment is not caused by one single factor; there are several forces that cause unemployment in different ways. The paper has taken an analytical look at the whole concept of unemployment. Priority has been given to the causes and types of unemployment.

The paper thus found out that unemployment is caused by various forces that are economical, social, and political in nature. At the same time, the paper found out that there is a different categorization of unemployment. This is normally done with the purpose of defining the essence of the unemployment problem in question.

Abbot, L. (2010). Theories of the Labour Market and Employment: A Review. Washington: Industrial Systems Research.

Harris, N. (2001). Business economics: theory and application. London: Butterworth-Heinemann.

Hooks, J. (2003). Economics: fundamentals for financial services providers. Washington: Kogan Page Publishers.

Stretton, H. (1999). Economics: a new introduction . Washington: Pluto Press.

Symes, V. (1995). Unemployment in Europe: problems and policies. New York: Routledge.

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Unemployment Essay for Students and Children

500+ words essay on unemployment.

Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment . Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs. Moreover, if we neglect this problem then it will be going to become the reason for the doom of the nation.

What is Unemployment?

Unemployment refers to a situation in which a skilled and talented people wanted to do a job. But cannot find a proper job due to several reasons.

Types of Unemployment

Now we know what is unemployment but unemployment does not only mean that the person does not have a job. Likewise, unemployment also includes people working in areas out of their expertise.

The various types of unemployment include disguised unemployment, seasonal unemployment, open unemployment, technological unemployment, structural unemployment. Besides, some other unemployment is cyclic unemployment, educated unemployment, underemployment, frictional unemployment, chronic unemployment, and casual unemployment.

Above all, seasonal unemployment, under unemployment, and disguised unemployment are the most common unemployment that is found in India.

Reasons for Unemployment

In a country like India, there is much reason for a large section of the population for being unemployed. Some of these factors are population growth, slow economic growth , seasonal occupation, slow growth of the economic sector, and fall in the cottage industry.

Moreover, these are the major reason for unemployment in India. Also, the situation has become so drastic that highly educated people are ready to do the job of a sweeper. Besides, the government is not doing his work seriously.

Apart from all these, a large portion of the population is engaged in the agricultural sector and the sector only provides employment in harvest or plantation time.

In addition, the biggest reason of unemployment in India is its vast population which demands a large number of jobs every year which the government and authorities are unable to provide.

Consequences of Unemployment

If things will go on like the current scenario then unemployment will become a major issue. Apart from this, the following things happen in an economy which is an increase in poverty, an increase in crime rate, exploitation of labor, political instability, mental health, and loss of skills. As a result, all this will eventually lead to the demise of the nation.

Get the huge list of more than 500 Essay Topics and Ideas

Initiative by Government

The government has taken the problem very seriously and have taken measures to slowly reduce unemployment. Some of these schemes includes IRDP (Integrated Rural Development Programme), DPAP (Drought Prone Area Programme), Jawahar Rozgar Yojana, Employment Assurance Scheme, NRY (Nehru Rozgar Yojana), Training for self-Employment, PMIUPEP (Prime Minister’s Integrated Urban Poverty Eradication Program), employment exchange, Employment Guarantee Scheme, development of organized sector, small and cottage industries, employment in forging countries, and Jawahar Gram Samridhi Yojana and few more.

Besides, these schemes the government also make some rules flexible, so that employment can be created in the private sector also.

To conclude, we can say that the problem of unemployment in India has reached a critical stage. But, now the government and local authorities have taken the problem seriously and working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India.

FAQs about Unemployment

Q.1 Why there is a problem of unemployment in India? A.1 Due to overpopulation and lack of proper skills there is a problem of unemployment in India.

Q.2 Define Disguised unemployment? A.2 Disguised unemployment refers to a form of employment in which more than the required numbers of people work in industry or factory. And removing some employee will not affect productivity.

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Guest Essay

Why the Election Is Coming Down to Defining Kamala Harris

By Kristen Soltis Anderson

Ms. Anderson, a contributing Opinion writer, is a Republican pollster and a moderator of Opinion’s series of focus groups.

The battle to win over the remaining undecided voters in the 2024 presidential election looks as though it’s coming down to which campaign can successfully define Kamala Harris; look no further than the ads you see on TV in battleground states.

This may also explain why polls in battleground states can paint a very different picture of the race from that of national polls. In the past several days, we’ve had a flurry of national polls with mostly good news for the Harris campaign, only to be followed by Monday’s release of New York Times/Siena College polls of three Sun Belt battleground states — Arizona, Georgia and North Carolina — that presented a much more favorable view of the race for Donald Trump.

I’ve been on the road recently in the Phoenix area and took a moment to catch Sunday’s game between the Detroit Lions and the Arizona Cardinals on TV. Arizona voters are seeing their airwaves blanketed by political ads, and I was struck by the difference in approach from the Trump and Harris teams. Spots aired by Mr. Trump and his allies were largely negative ads about Ms. Harris, highlighting, in particular, her past position supporting the provision of gender transition surgery to incarcerated people. Meanwhile, ads from the Harris camp varied: While some hit Mr. Trump, particularly on the issue of abortion, more than a few were also purely positive ads, including highlighting her comment , during their debate, about her time as a prosecutor who “never asked a victim or a witness, ‘Are you a Republican or a Democrat?’”

The ads were representative of the mix of messaging that battleground state viewers have been seeing since on-air spending for the two campaigns ramped up in recent weeks. The Wesleyan Media Project estimated that the Trump team has spent almost zero on ads that only promote him in a positive light, while around a quarter of Harris ads are positive.

Why are both campaigns spending so much time talking about Ms. Harris? Because while most voters know how they feel about Mr. Trump, views of her remain very fluid.

Take the NBC News poll that came out this past weekend, showing Ms. Harris with a five-point advantage over Mr. Trump among registered voters. It also showed that since July, views on her swung significantly from deep unpopularity (a net 18 percentage points unfavorable) to a net positive (net three points favorable). NBC’s Mark Murray noted only three other times a presidential candidate’s favorability has swung so significantly in such a short period, including George W. Bush’s favorability immediately after Sept. 11.

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