structural unemployment

Examples of structural unemployment in the following topics:

• Types of Unemployment: Frictional, Structural, Cyclical

  • Structural unemployment is one of the main types of unemployment within an economic system.
  • Structural unemployment occurs when a labor market is not able to provide jobs for everyone who is seeking employment.
  • The natural unemployment rate, sometimes called the structural unemployment rate, was developed by Friedman and Phelps in the 1960s.
  • The natural rate of unemployment is a combination of structural and frictional unemployment.
  • When there is structural unemployment, workers may seek to learn different skills so that they can apply to new types of jobs.

• Reasons for Unemployment

  • There are three reasons for unemployment which are categorizes as frictional, structural, and cyclical unemployment.
  • The reason why the natural rate of unemployment is still positive is due to frictional and structural unemployment.
  • There is always at least some frictional unemployment in an economy, so the level of involuntary unemployment is properly the unemployment rate minus the rate of frictional unemployment.
  • Structural unemployment is a form of unemployment where, at a given wage, the quantity of labor supplied exceeds the quantity of labor demanded, because there is a fundamental mismatch between the number of people who want to work and the number of jobs that are available.
  • A common cause of structural unemployment is technological change.

• Employment Levels

  • Employment level, as defined by cyclical, structural and frictional unemployment, is one of the most important economic indicators.
  • An alternative, more normative, definition describes full employment as the attainment of the ideal unemployment rate, where the types of unemployment that reflect labor-market inefficiency (such as structural unemployment) do not exist.
  • There are three important categories of unemployment levels that should be understood in order to evaluate the effect of employment levels on overall economic performance: cyclical unemployment, structural unemployment, and frictional unemployment.
  • The implication is that sustained high demand may lower structural unemployment.
  • Seasonal unemployment may be seen as a kind of structural unemployment, since it is a type of unemployment that is linked to certain kinds of jobs (construction work or migratory farm work).

• Impact of Public Policy on Unemployment

  • Most governments strive to achieve low levels of unemployment.
  • Governments can enact policies to try to reduce frictional unemployment.
  • Structural unemployment is due to more people wanting jobs than there are jobs available.
  • Public policy can respond to structural unemployment through programs like job training and education to equip workers with the skills firms demand.
  • Many organizations seek to minimize structural unemployment by offering job training and education to provide workers with in-demand skills.

• Typical Lengths of Unemployment

  • Long-term unemployment lasts 27 or more weeks.
  • Structural: occurs when the labor market is not able to provide jobs for everyone who wants to work.
  • There is a mismatch between the skills of the workers and the skills needed for the jobs that are available.Structural unemployment is similar to frictional unemployment, but it lasts longer.
  • Short-term unemployment is considered any unemployment period that lasts less than 27 weeks.
  • Long-term unemployment is classified as unemployment that lasts for 27 weeks or longer.

• Macroeconomics

  • Macroeconomics is the study of the performance, structure, behavior and decision-making of an economy as a whole.
  • Macroeconomics is the study of the performance, structure, behavior and decision-making of an economy as a whole .
  • Most economists believe that there will always be a certain amount of frictional, seasonal and structural unemployment (referred to as the natural rate of unemployment).
  • As a result, full employment does not mean zero unemployment.
  • These models rely on aggregated economic indicators such as GDP, unemployment, and price indices.

• Measuring the Unemployment Rate

  • Structural unemployment: occurs when the labor market is unable to provide jobs for everyone who wants to work.
  • The unemployment rate is measured using two different labor force surveys.
  • The survey measures the unemployment rate based on the ILO definition.
  • The unemployment rate is updated on a monthly basis.
  • They calculate different aspects of unemployment.

• The Practice of Conversation

  • This essay introduction states a problem, provides a current, real-world context, presents an opposing view, and then states the writer's argument: "In the current debate about time limits for unemployment benefits in the U.S., there is no consensus on the structural conditions that govern unemployment rates.
  • Hassett of the American Enterprise Institute, argues that lengthy unemployment benefits take away the recipients' incentive to find work, creating what he calls a 'structural unemployment problem. ' However, liberal economists tend to see scarcity of jobs as the primary structural problem in an economic downturn.
  • Although there has been some improvement in hiring rates, the numbers are still too bleak to support paranoia about a benefit-fueled 'structural unemployment problem. ' Based on the current unemployment and hiring figures, it is clear that the policy agenda should focus on creating jobs and continuing to help the victims of the downturn. "

• Defining Unemployment

  • Structural: occurs when the labor market is not able to provide jobs for everyone who wants to work.
  • It differs from frictional unemployment because it lasts longer.
  • Hidden: the unemployment of potential workers that is not taken into account in official unemployment statistics because of how the data is collected.
  • The final measurement is called the rate of unemployment .
  • The effects of unemployment can be broken down into three types:

• Defining Full Employment

  • Full employment is defined as an acceptable level of unemployment somewhere above 0%; there is no cyclical or deficient-demand unemployment.
  • Ideal unemployment excludes types of unemployment where labor-market inefficiency is reflected.
  • Ideal unemployment promotes the efficiency of the economy.
  • The full employment unemployment rate is also referred to as "natural" unemployment.
  • Full employment is defined as "ideal" unemployment.