College Paper

2425 Words10 Pages
Macroeconomics Research Paper There are always some people who are unemployed in our community. This is because of the four different types of unemployment. These are frictional, seasonal, cyclical and structural. One case of unemployment, knows as frictional unemployment, it is voluntary. Frictionally unemployed workers have chosen to move from one job to another to seek better pay, or to look for better opportunities. The other unemployment categories are involuntary, because people have been displaced from their job. Seasonal unemployment affects occupations such as fruit pickers, fishermen and shearers, where they are only employed during certain times of the year because of the nature of their work. Both frictional and seasonal unemployment are usually short-term unemployment. Cyclical unemployment occurs in the downswing phases of the trade cycle. When the level of spending in the economy is insufficient to purchase the goods and services for sale, firms will find it necessary to put off some of their labor. Cyclical unemployment rises and falls in line with changed in economics activity. In periods of high economic activity there are more job vacancies and the unemployment rate decreases and vice versa. In these periods of low economic activity it tends to be associated with rapid rises in unemployment, but recovery from recessions tends to take longer periods of time to feed through into the market for labor. The fact that cyclical unemployment rises quickly, but falls slowly, might have something to do with structural unemployment if employers replace labor with more productive capital equipment to save costs when the economy is tight. Structural unemployment is the impact of changes in the framework of the economy on the demand for labor. Structural change is caused by technological change, which usually means that the demands for some types of workers

More about College Paper

Open Document