Unemployment refers to the situation where persons of working age cannot find a job despite their desire to work. Unemployment can cause serious economic and social problems. Rising unemployment leaves people without an income and increases the risk of poverty. Therefore, the goal of countries is to prevent or at least reduce unemployment. Unemployment can have various causes. In this article, we provide information about the types of unemployment.
What is Unemployment?
Unemployment is a situation where a person is looking for a job in the labor market but cannot find a job. The unemployment rate is the ratio between the number of jobseekers and the labor force. The workforce is the number of people in the total workforce, such as employees and job seekers. The unemployment rate is an indicator of a country’s economic health.
Types of unemployment
1. Seasonal unemployment
Seasonal unemployment, mostly in industrially developed countries, consists of seasonal changes in the demand for goods. In countries where agriculture is dominant, seasonal unemployment is not due to demand for products; It consists of seasonal changes in relation to the delivery of goods. This type of unemployment can be reduced by the policies of countries in the agricultural sector.
2. Technological unemployment
Technological unemployment is the result of using machines instead of manpower. Automation is production through self-acting mechanical, hydraulic, chemical and electronic devices. While this type of unemployment increases the need for engineers and technicians; affect working conditions in a human and social sense. While it reduces material fatigue and work accidents, it increases moral fatigue.
3. Structural (structural) unemployment
Intrinsic unemployment is the result of changes in the structure of the economy. This unemployment arises due to the incompatibility of the job seekers’ skills, the chosen profession, the location and similar reasons and the structure of the market.
4. Cyclical unemployment
Cyclical unemployment is the unemployment that arises as a result of the fluctuations that occur from time to time in the productive capacity of the country and the contractions that occur. This kind of unemployment is a result of the capitalist system.
5. Occasional unemployment
Incidental unemployment is caused by fluctuations and temporary situations in the economy. The job search process of recent graduates is also evaluated in this context. This type of unemployment can exist even at the full employment level of the economy and is called natural unemployment.
6. Administrative Unemployment
Administrative unemployment is the type of unemployment created by people who do not work because they do not accept the current price conditions set in the market. Another form of attendance is; Waiting unemployment is speculative unemployment. In this case the unemployed; sees the marginal utility of the wages that he has rejected as a reason for not working as lower than the marginal utility of his free time.
7. Document and Sector Unemployment
Document and sector unemployment is the unemployment that arises because the incentives and subsidies of certain sectors and regions disappear, and their contraction because they lose interest. This type of unemployment affects people in certain occupations.
8. Hidden unemployment
Hidden unemployment is the type of unemployment that prevents production from contracting even if a proportion of workers in a given manufacturing sector quit their jobs. This form of unemployment is more common in the rural agricultural sector in developing countries.
Economic consequences of unemployment
Unemployment can cause many economic problems. When unemployment rises, consumer spending falls and corporate output falls. This slows the growth of an economy and can further increase unemployment.
Unemployment can also have negative consequences for individuals. The financial resources of the unemployed are diminishing and the standard of living is falling. In addition, unemployment can cause psychological problems and reduce individuals’ self-esteem and motivation.
Ways to deal with unemployment
There are many different ways to combat unemployment. The unemployed can mainly follow training and career guidance programs to improve their search skills. They can also take advantage of social assistance programs such as unemployment insurance.
Countries can also take various measures to support their economic development. For example, governments can help create new jobs by stimulating businesses. They can also invest in training programs to increase the demand for skills in the labor market.
Why is unemployment important?
Unemployment can cause serious economic and social problems. Rising unemployment leaves people without an income and increases the risk of poverty. In addition, unemployment reduces people’s self-confidence and can cause social unrest.
How is unemployment measured?
The unemployment rate is measured by calculating the labor force participation rate and the ratio of the number of unemployed to the total labor force.
What kind of policies can be pursued in the fight against unemployment?
Policies that create employment can be pursued in the fight against unemployment. These policies include education and vocational training programs, unemployment insurance, economic incentives and investment in job creation.
What problems can unemployment cause in an economy?
Unemployment can lead to reduced consumer spending and reduced production by companies. This slows economic growth and can increase unemployment.
What assistance programs are there for the unemployed?
The unemployed can take advantage of social assistance programs such as unemployment insurance.