Economics Essay

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Unemployment is a societal scourge, a source of human suffering and strife. The Canadian economy suffers when the unemployment rate is high and citizens are also affected personally, yet how can we fight the battle against unemployment - when the fight has never begun? In this paper, I will explore the three most common types of unemployment facing Canada and propose government policies that will effectively combat unemployment. As a country, Canada faces three common types of unemployment - structural, frictional, and seasonal. Structural unemployment occurs when there tends to be a mismatch between people and professions and when jobless citizens do not have the qualifications or simply can not train in the positions available. Structural Unemployment is simply caused by one word: changes. Many see the problems of unemployment as issues in structure, production, and efficiency; these conflicts are unavoidable in a fluctuating economy such as Canada’s. Technology is a good example of an issue that illustrates how structural unemployment can contribute to the number of workers who are jobless in society; because as labor productivity increases, fewer employees are necessary to produce a constant annual output. Frictional unemployment results from citizens searching for an occupation or being in a temporary position between jobs. As noted in Understanding Economics (pg 240), this type of unemployment represents 3 percent of the labor force at any given time, this statistic explains to us that frictional unemployment is present regardless of economic conditions. Even in the best functioning economy there are individuals in midst of an occupational change, therefore this category can never be removed or diminished. Seasonal unemployment is unemployment caused by the seasonal nature of some jobs and industries, and is evident in Canada due to our drastic climate

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