Micro Economics

Running Head : UnemploymentNameUniversityCourseTutorDateUnemploymentUnemployment is an economic condition where individuals are actively seeking for a communication channel and are unable to fix it . Unemployment status excludes children , retirees and those who are not actively involved in securing a paying job . Unemployment is expressed as a percentage of the inert individuals seeking for a paying job . Unemployment condition varies with the state economic conditions and political conditions Unemployment rate in whatsoever country is given as the number of trifling individuals as a percentage of the increasing dramatically in many parts of the world . 3 of unemployment is allowed in any country at one time even with absence seizure of cyclical unemployment (Ottoman , 1996 Symes , 1995Unemployment is caused by many factors in a upstart market economy . It can be caused by quick technological change business cycle , seasonal factors in some industries which affect tastes and climatic conditions which affect demand of genuine goods and services discrimination in the work place establish on race , religion , ethnicity and age (Symes , 1995Unemployment occurs in variant forms in a country . In this four types of unemployment allow for be discussed . These are Structural unemployment , frictional unemployment , cyclical unemployment and loyal unemploymentCyclical unemployment is said to be caused by economic down turns largely referred to as business cycle . During capacious depression , for voice in 1930 , there was deficient aggregate demand caused by law brass t spending and under role by consumers . During depression too it s evident that the supply of assiduity is high than the labour opportunites available hence unemployment status in the economy . In cyclical unemployment when economy improves after recessional then the unemployment level is said to lower . Economy value is attributed to full employment of capital available .

Cyclical unemployment whitethorn occur when a country experiences recessions and hence and hence businesses payable to heavy capital losses may be strained to close down leading to unemployment of the individuals affected (Ottoman , 1996 Symes , 1995Cyclical unemployment has serious cause on the morale , worker skills and work habits of the worker . The g everyplacenment may come up with unemployment insurance that should be introduced in great depression although it should be designed to tide over short term seasonal unemployment . Cyclical unemployment should be address by the disposal appropriately by developing economic macro economic stabilization policy (Nelson , 1969Stabilization policy involves step-down of interest rates by Federal Reserve financial authorities and deficit spending by the federal government until the economy recovers . When unemployment persist the government can employ the un apply as a last resort to assist them sack up a pay called living wage and this would induce industries to do the same when it is ready to do it again . For example during great Depression in 1934 artists and musicians who would otherwise have been unemployed were employed by government to paint pictures for public buildings and put on symphony concerts respectively . The artists and musicians got rewarding jobs after the economy bring to (Ottoman , 1996 Symes , 1995Structural unemployment is...If you want to get a full essay, order it on our website: Ordercustompaper.com

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