Running Head: UNEMPLOYMENT

Unemployment
Name
Affiliation

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Unemployment
When a person is actively searching for certain job or work but is unable to find the job
during the time is called as unemployed, and state of being unemployed is called as
unemployment. The unemployment frequency is commonly used to ration the unemployment.
Three types of unemployment are often measured in an economy. This age: structural, functional
and cyclical unemployment. Structural unemployment is the type of unemployment that can last
for longer periods. This type of unemployment occurs when a person takes a certain time to find
new and better job. For example, a person has just graduated from a university and isnt
expecting any urgent recruitment or hiring, then, this will be called as frictional unemployment.
If people are losing their job due to variations in the business cycle, then, this will be called as
cyclical unemployment.
In America economy, unemployment is increasing for the past two years. There are
certain fluctuations after 2005 in the unemployment rate. From 2006 to 2008, the unemployment
rate was decreasing and after that, there was a sudden upsurge in the unemployment rate due to
the worldwide recession (Reeves, McKee & Stuckler, 2014). There were slight changes in the
unemployment rate in 2010 and 2011, and further, it increased in 2012 and 2013. Moreover, the
unemployment rate is greater in South America and a major reason for this is the migration of
skilled labor force to North America due to which local labor was affected (Ball, De Roux &
Hofstetter, 2013). The unemployment rate can be calculated by dividing the numbers of
unemployed people to the total labor force.
Unemployment rate = total numbers of unemployed people/ total labor force

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Structural Unemployment
Structural unemployment is the type of unemployment that can last for longer periods. This
category of unemployment occurs when there is a mismatch between available jobs and available
labors. In this type of unemployment, people are desirous to work, but they dont have necessary
qualification for that particular job. This type of unemployment can occur when in an economy
demand for certain labor changes. Structural unemployment is a more lasting level of
unemployment that is brought about by strengths other than the business cycle (West, 2016). It
can be the consequence of a hidden movement in the economy that makes it troublesome for
specific fragments of the populace to discover employments. It's regularly when there is a
mismatch between the occupations accessible and the expertise levels of the unemployed.
Marginal unemployment
Individual takes a certain time to find new and better job. For example, a person has just
graduated from a university and isnt expecting any urgent recruitment or hiring, then, this will
be called as frictional unemployment. It is also common that people switch from one job to
another and during that switching, most of their time is wasted, and they remained unemployed
during that period. This is considered as frictional unemployment. Thus the type of
unemployment is also called as voluntary unemployment as people deliberately dont enter the
job market and are waiting for the right job for them.
Cyclical Unemployment
If people are losing their job due to variations in the business cycle, then, this will be called as
cyclical unemployment. If an economy is growing slowly, then, cyclical unemployment will be
higher. Cyclical unemployment is specifically identified with the level of macroeconomic action,

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which is the total action of all persons and substances included in an economy. This total action
is patterned rather than direct - financial action tends to rise and fall rather than continually rising
or continually falling.

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References
Ball, L., De Roux, N., & Hofstetter, M. (2013). Unemployment in Latin America and the
Caribbean. Open Economies Review, 24(3), 397424.http://link.springer.com/article/10.1007/s11079-012-9248-2
Reeves, A., McKee, M., & Stuckler, D. (2014). Economic suicides in the great recession in
Europe and North America. The British Journal of Psychiatry, 205(3), 246247.http://bjp.rcpsych.org/content/205/3/246.short
West, R., Dutta-Gupta, I., Grant, K., Boteach, M., McKenna, C., & May, J. C. (2016). A Plan to
Improve Unemployment Protections in America.https://cdn.americanprogress.org/wpcontent/uploads/2016/06/01052018/UI_JSAfactsheet.pdf