Macroeconomic Unemployment Essay

879 Words 4 Pages
There are certain aspects of macroeconomic that people should consider before opening his or her business. We should examine the Gross Domestic Product which is known as the GDP. “The gross domestic product (GDP) is one the primary indicators used to check the status of a country 's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy” For whom want to start his or her business should review the GDP over the past few years. For example, if the GDP of 2015 increased by 5%, then we would have an idea of the economy is growing. If the Gross Domestic Product is negative, then the economy is in a recession. If the economy goes into a recession, …show more content…
Frictional unemployment is the most common type of unemployment. It refers to the time it takes unemployed people to decide on a job position and the time it takes employers to pick the right candidate. An example of frictional unemployment is when a person quits their current job in pursuit of a better one, but they have not found the new job yet. Frictional unemployment is typically short term and voluntary. However, we should monitor this because if the number is too high then it can affect the health of the …show more content…
Structural unemployment seems to last longer than Frictional unemployment, because there is a mismatch between the needs of the companies and what the candidate can provide. The next type of unemployment that we should research is Seasonal unemployment. During certain seasons the demand for certain items decrease or increase which means employers may need to layoff or hire more people. During the holiday season, the retail market’s demand increase which causes certain stores to hire more workers. However, once that season is over then operations go back to normal and some of those additional workers are no longer needed. Cyclical unemployment is the last type of unemployment that we should be made aware of. Cyclical unemployment is the fluctuation in unemployment caused by the business cycle, especially caused by a recession. It will be our responsibility to understand the different types of unemployment so that we are hiring the right staff for our business. Having the right people in the right positions will help the success of our

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