Types of Unemployment

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Types of Employ Macroeconomics 10-04-2012 ‘ Types of Unemployment Since there will always be unemployed people in the world, I have decided to give the four different types of unemployment a better look in order to have a better understanding of the causes of unemployment in today’s society. These four different types include frictional, seasonal, cyclical and structural. This paper will explore briefly over what the different types of unemployment are and then evaluate different policies designed to correct these two types of unemployment and will then concluded with the economic effects that unemployment has on the economy. In compiling unemployment statistics for the United States and other developed countries an unemployed person is defined as anyone who is capable of working and is actively seeking work but is unable to find a job. Before a person can be unemployed in this sense he must be an active member of the labor force in search of a job. Students and Homemakers perform work, but they are not considered employed unless they are paid; however, they are not considered unemployed unless they are actively seeking gainful jobs. In societies in which a majority of the citizens are able to earn a living by working for others, being unable to locate and obtain a job is a very serious problem. Unemployment is widely used as a measure of workers' welfare because of the human costs and feelings of rejection and personal failure. The proportion of workers unemployed also shows how well nation’s human resources are used and serves as an index of economic activity. The civilian labor force comprises the total of all civilians classified as employed or unemployed. The total labor force also includes members of the Armed Forces stationed either in the US or abroad. The unemployment rate represents the number unemployed as a percent of the civilian labor force.
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