The Oxford dictionary definition of unemployment is ‘the number of people without a job. There are many types of unemployment frictional unemployment, cyclical unemployment, seasonal unemployment, structural unemployment, voluntary and non-voluntary unemployment. These different types unemployment explain why unemployment is not always the result of low economic growth.
Furthermore one factor which explains the reason why unemployment is not the result of low economic growth is structural unemployment. Structural unemployment is unemployment due to changes in technology. In the 21st century new products are being introduced and launched to the market frequently. Therefore the demand and services for goods changes. This leads to increase in …show more content…
An example of this is swimming facilities which require life guards. In the winter less swimming facilities are open as less people are inclined to use these facilities because they are concerned with catching a cold when the walk outside while wet. Therefore less swimming facilities are open and then as a consequence there are less life guards needed in the winter. As a result the life guard is classed as unemployed in the winter. Therefore unemployment is not the result of low economic growth.
Moreover another factor which explains the reason why unemployment is not the result of low economic growth is frictional unemployment this is workers lose their existing job and are in the course of finding another one. An example of this would be a university graduate who has graduated and who suddenly becomes available in the job market, but has yet to find their first job. Those looking for jobs are classes as unemployed. There will always be frictional unemployment in a free market economy. Therefore unemployment is not the result of low economic …show more content…
Economies tend to experience business cycles. These are movements from boom to recession over time. Cyclical unemployment occurs when the economy is not in a boom. Cyclical Unemployment is unemployment due to negative economic growth. In a recession, cyclical unemployment will rise sharply. This is because if there are fewer orders for goods, firms produce less therefore there is less demand for workers. A recent study showed that UK unemployment would peak at 3.2 million in 2010 due to the scale of the recent recession. Frequently cyclical unemployment can cause a rise in the natural rate of unemployment. If young people are out of work for a long period of time in a recession, it can be difficult for them to get back into employment because of lack of job experience and a decline in enthusiasm. This is known as the hysteresis theory. Therefore unemployment is the result of low economic
Furthermore one factor which explains the reason why unemployment is not the result of low economic growth is structural unemployment. Structural unemployment is unemployment due to changes in technology. In the 21st century new products are being introduced and launched to the market frequently. Therefore the demand and services for goods changes. This leads to increase in …show more content…
An example of this is swimming facilities which require life guards. In the winter less swimming facilities are open as less people are inclined to use these facilities because they are concerned with catching a cold when the walk outside while wet. Therefore less swimming facilities are open and then as a consequence there are less life guards needed in the winter. As a result the life guard is classed as unemployed in the winter. Therefore unemployment is not the result of low economic growth.
Moreover another factor which explains the reason why unemployment is not the result of low economic growth is frictional unemployment this is workers lose their existing job and are in the course of finding another one. An example of this would be a university graduate who has graduated and who suddenly becomes available in the job market, but has yet to find their first job. Those looking for jobs are classes as unemployed. There will always be frictional unemployment in a free market economy. Therefore unemployment is not the result of low economic …show more content…
Economies tend to experience business cycles. These are movements from boom to recession over time. Cyclical unemployment occurs when the economy is not in a boom. Cyclical Unemployment is unemployment due to negative economic growth. In a recession, cyclical unemployment will rise sharply. This is because if there are fewer orders for goods, firms produce less therefore there is less demand for workers. A recent study showed that UK unemployment would peak at 3.2 million in 2010 due to the scale of the recent recession. Frequently cyclical unemployment can cause a rise in the natural rate of unemployment. If young people are out of work for a long period of time in a recession, it can be difficult for them to get back into employment because of lack of job experience and a decline in enthusiasm. This is known as the hysteresis theory. Therefore unemployment is the result of low economic