Unemployment is the number of individuals who are searching for the job currently

but they do not have a job. However, children and inmates are excluded since not
every individual without the job is classified as unemployed. Actually, economists
explain unemployment as people in the working-age bracket but they do not have the
job currently and they are available for the job at current wage rates.
Unemployment is not only an economic issue but also a very serious social problem
in the countries that are developing such as Vietnam. Waste of resources is
synonymous with unemployment since labor is one of the inputs in process of
production. Moreover, lack of job results to poverty and lack of equality in
economies' development. The healthy measurements of an economy can be done through
unemployment. Mathematically, unemployment can be expressed as the workers who are
not employed divided by labor force multiplied by hundred i.e. it is expressed in
percentage.
Causes of unemployment are due to different factors such as sudden changes in
technology, recession, inflation, disability, unstable business cycles, and changes
in tastes and alteration in climatic conditions. The two major categories of
unemployment are disequilibrium and equilibrium unemployment. The frictional
unemployment is unemployment due to the friction of the economy naturally and it is
represented by people who change job with skills that can be transferred. For
instance, a job seeker may not have the skills to look for jobs in the company that
may require his skills. Due to this, the person may not engage in other work for
the time being as he waits for a better job.
There is structural unemployment which is caused by changes in economic structure
that makes some jobs to disappear and consequently create other jobs that
unemployed are not qualifying. For instance, evolution in computer technology may
have eliminated some jobs at the same time creating new jobs. Another cause of
unemployment is when real wages are forced above the market clearing level. This
causes a type of unemployment called real wage unemployment. Another cause of
unemployment is an economic contraction. For example, economic recession leads too
many firms closing down and others become bankrupt.
Another cause of unemployment is the seasonal trend. For example, skiing
instructors teach people how to skis in winter but when the snow is gone they are
out of job. Another cause of unemployment is due to disabilities or other factors
that cannot be corrected. For example, blind or mentally challenged people may need
employment but they cannot perform even when given an opportunity. Unemployment can
be caused by lack of reflection of the workers in the official unemployment
statistics because of the way they are compiled. For example, discouraged workers
may fail to search job because of long term search of the job without getting one.
This leads to loss of motivation and morale. Unemployment can be caused by poverty
trap due to lack of financial disincentives caused by taxation and government
benefits systems. When lack of employment rate is equal to natural unemployment
then there is the existence of full employment.
As a developing country, Vietnam had to recover from scores of war in the last
thirty-five years. In the year 1986, the government of Vietnam introduced "Doi Moi"
which has impacted its economy positively. Also, the Vietnam governance has
increased economic liberty by changing its policy. Since the year 1986, the economy
of Vietnam has been changed from centrally planned to market economy. Gradually and
partially since then, Vietnam has reduced poverty, raised living standards of its
citizen under stable political foundation. Despite this, Vietnam is still facing a
high rate of unemployment more so underemployment. Factors such as population
increase, national economy, inflation and monetary have been very key in
contributing to Vietnam unemployment. Actually, unemployment in Vietnam is not that
critical. However, the youth unemployment is two-thirds of the total unemployment.
The economic development and the rich and the poor gap are causing education to be
more expensive. This implies that there are a good number of youths who cannot
afford education. As a result, the youths lack the skills and knowledge to enter
the labor market.
Another cause of unemployment in Vietnam is a poor education system and pieces of
training. Many degree holders work in labor markets where they do not apply the
skills and knowledge acquired in university. This implies that people who do not
have the formal education they may not get jobs. Actually every year more than 1.4
million people enter the job market but around thirty percent of the people who
have skilled training. Therefore a large percentage of people do not have the right
skills that are in high demand. To measure unemployment rate, there is need to
identify who is in the labor force. The employed and unemployed individual make up
the labor force. To examine the labor force, there is a need to take practical
judgment like how much paid work someone needs to engage in so that he can be
considered employee and counting the number of people having a job. Underemployment
is the situation when all the skills, education or availability to work are not
used in jobs. The two categories of underemployment are visible and invisible.
Workers who are work for fewer hours than is expected in their field are described
to as underemployment. Actually, they are able and willing for extra time but they
can't get this kind of full-time job. Just to meet their basic needs they have to
work two part-time jobs. Invisible underemployment involves workers in a full-time
job but they do not use all their skills. It is almost impossible to measure this
kind of underemployment. It needs a detailed survey to compare employee against job
requirements. Another type of underemployment is statistical or no man's land. This
means that they are not categorized as unemployed because they do not have a job.
There are unemployment disparities in different regions in Australia. Over the past
twenty years, the relationship has been held up. The variation of unemployment has
been due to significant changes in structure in economy and change in rates of
growth in all industries. During the boom of resources, the regional unemployment
deviation has narrowed and as the national unemployment rate has fallen. Australia
can implement two main policies to reduce unemployment. These two policies are
demand size policies and supply-side policies. The demand size policy will reduce
unemployment caused by the economic recession while the supply size policy will
minimize unemployment caused by the natural unemployment rate. Other policies
include a monetary policy which reduces the interest rate to boost aggregate
demand. Fiscal policy will reduce taxation to increase aggregate demand. Also,
Educational and training policies will minimize structural unemployment. Subsidies
that are a geographical need to be put in place to encourage firms to invest in
depressed areas. Another useful policy is to reduce minimum wage to reduce real
wage unemployment.
Education and pieces of training give lasting new skills to unemployed people.
These skills assist them to find a job in developing industries. For example, the
unemployed steelworkers are retrained to have information technology skills.
However, the people who are not employed may not be willing to learn new skills and
thus it might take a long time for Australia to eradicate unemployment. Another
policy is reducing trade union powers. When trade unions bargain for wages that is
beyond the market level they cause real wage unemployment. This will serve better
to solve real wage unemployment. Additionally, employment subsidies policy should
be put in place in Australia. Firms that take a long time break should be given tax
breaks. This assists such companies to gain new confidence and be able to conduct
job pieces of training. However, it might be very costly and consequentially
encourage firms to replace current employees with long term unemployment breaks so
that they can benefit from tax breaks.
Benefits requirement for the sticker is another policy that Vietnam can embark to
reduce unemployment. Unemployed should embrace risk losing benefits through pro-
activeness of the government. After a given period, the government should assure
the unemployed jobs such as cleaning the streets in the public sector. However,
this might be a financial burden to the government since it will end up employing
many people in the unproductive sector. Lastly, the policy of improving
geographical mobility should be implemented. Usually, people who are not employed
tend to be in large number in certain regions. This geographical unemployment can
be tamed by giving firms that are situated in areas that are depressed tax breaks.
The government can provide an alternative through giving the unemployed assistance
in terms of finance especially those who move to places with high employment.
Unemployment is the number of individuals who are searching for the job currently
but they do not have a job. However, children and inmates are excluded since not
every individual without the job is classified as unemployed. Actually, economists
explain unemployment as people in the working-age bracket but they do not have the
job currently and they are available for the job at current wage rates.
Unemployment is not only an economic issue but also a very serious social problem
in the countries that are developing such as Vietnam. Waste of resources is
synonymous with unemployment since labor is one of the inputs in process of
production. Moreover, lack of job results to poverty and lack of equality in
economies' development. The healthy measurements of an economy can be done through
unemployment. Mathematically, unemployment can be expressed as the workers who are
not employed divided by labor force multiplied by hundred i.e. it is expressed in
percentage.
Causes of unemployment are due to different factors such as sudden changes in
technology, recession, inflation, disability, unstable business cycles, and changes
in tastes and alteration in climatic conditions. The two major categories of
unemployment are disequilibrium and equilibrium unemployment. The frictional
unemployment is unemployment due to the friction of the economy naturally and it is
represented by people who change job with skills that can be transferred. For
instance, a job seeker may not have the skills to look for jobs in the company that
may require his skills. Due to this, the person may not engage in other work for
the time being as he waits for a better job.
There is structural unemployment which is caused by changes in economic structure
that makes some jobs to disappear and consequently create other jobs that
unemployed are not qualifying. For instance, evolution in computer technology may
have eliminated some jobs at the same time creating new jobs. Another cause of
unemployment is when real wages are forced above the market clearing level. This
causes a type of unemployment called real wage unemployment. Another cause of
unemployment is an economic contraction. For example, economic recession leads too
many firms closing down and others become bankrupt.
Another cause of unemployment is the seasonal trend. For example, skiing
instructors teach people how to skis in winter but when the snow is gone they are
out of job. Another cause of unemployment is due to disabilities or other factors
that cannot be corrected. For example, blind or mentally challenged people may need
employment but they cannot perform even when given an opportunity. Unemployment can
be caused by lack of reflection of the workers in the official unemployment
statistics because of the way they are compiled. For example, discouraged workers
may fail to search job because of long term search of the job without getting one.
This leads to loss of motivation and morale. Unemployment can be caused by poverty
trap due to lack of financial disincentives caused by taxation and government
benefits systems. When lack of employment rate is equal to natural unemployment
then there is the existence of full employment.
As a developing country, Vietnam had to recover from scores of war in the last
thirty-five years. In the year 1986, the government of Vietnam introduced "Doi Moi"
which has impacted its economy positively. Also, the Vietnam governance has
increased economic liberty by changing its policy. Since the year 1986, the economy
of Vietnam has been changed from centrally planned to market economy. Gradually and
partially since then, Vietnam has reduced poverty, raised living standards of its
citizen under stable political foundation. Despite this, Vietnam is still facing a
high rate of unemployment more so underemployment. Factors such as population
increase, national economy, inflation and monetary have been very key in
contributing to Vietnam unemployment. Actually, unemployment in Vietnam is not that
critical. However, the youth unemployment is two-thirds of the total unemployment.
The economic development and the rich and the poor gap are causing education to be
more expensive. This implies that there are a good number of youths who cannot
afford education. As a result, the youths lack the skills and knowledge to enter
the labor market.
Another cause of unemployment in Vietnam is a poor education system and pieces of
training. Many degree holders work in labor markets where they do not apply the
skills and knowledge acquired in university. This implies that people who do not
have the formal education they may not get jobs. Actually every year more than 1.4
million people enter the job market but around thirty percent of the people who
have skilled training. Therefore a large percentage of people do not have the right
skills that are in high demand. To measure unemployment rate, there is need to
identify who is in the labor force. The employed and unemployed individual make up
the labor force. To examine the labor force, there is a need to take practical
judgment like how much paid work someone needs to engage in so that he can be
considered employee and counting the number of people having a job. Underemployment
is the situation when all the skills, education or availability to work are not
used in jobs. The two categories of underemployment are visible and invisible.
Workers who are work for fewer hours than is expected in their field are described
to as underemployment. Actually, they are able and willing for extra time but they
can't get this kind of full-time job. Just to meet their basic needs they have to
work two part-time jobs. Invisible underemployment involves workers in a full-time
job but they do not use all their skills. It is almost impossible to measure this
kind of underemployment. It needs a detailed survey to compare employee against job
requirements. Another type of underemployment is statistical or no man's land. This
means that they are not categorized as unemployed because they do not have a job.
There are unemployment disparities in different regions in Australia. Over the past
twenty years, the relationship has been held up. The variation of unemployment has
been due to significant changes in structure in economy and change in rates of
growth in all industries. During the boom of resources, the regional unemployment
deviation has narrowed and as the national unemployment rate has fallen. Australia
can implement two main policies to reduce unemployment. These two policies are
demand size policies and supply-side policies. The demand size policy will reduce
unemployment caused by the economic recession while the supply size policy will
minimize unemployment caused by the natural unemployment rate. Other policies
include a monetary policy which reduces the interest rate to boost aggregate
demand. Fiscal policy will reduce taxation to increase aggregate demand. Also,
Educational and training policies will minimize structural unemployment. Subsidies
that are a geographical need to be put in place to encourage firms to invest in
depressed areas. Another useful policy is to reduce minimum wage to reduce real
wage unemployment.
Education and pieces of training give lasting new skills to unemployed people.
These skills assist them to find a job in developing industries. For example, the
unemployed steelworkers are retrained to have information technology skills.
However, the people who are not employed may not be willing to learn new skills and
thus it might take a long time for Australia to eradicate unemployment. Another
policy is reducing trade union powers. When trade unions bargain for wages that is
beyond the market level they cause real wage unemployment. This will serve better
to solve real wage unemployment. Additionally, employment subsidies policy should
be put in place in Australia. Firms that take a long time break should be given tax
breaks. This assists such companies to gain new confidence and be able to conduct
job pieces of training. However, it might be very costly and consequentially
encourage firms to replace current employees with long term unemployment breaks so
that they can benefit from tax breaks.
Benefits requirement for the sticker is another policy that Vietnam can embark to
reduce unemployment. Unemployed should embrace risk losing benefits through pro-
activeness of the government. After a given period, the government should assure
the unemployed jobs such as cleaning the streets in the public sector. However,
this might be a financial burden to the government since it will end up employing
many people in the unproductive sector. Lastly, the policy of improving
geographical mobility should be implemented. Usually, people who are not employed
tend to be in large number in certain regions. This geographical unemployment can
be tamed by giving firms that are situated in areas that are depressed tax breaks.
The government can provide an alternative through giving the unemployed assistance
in terms of finance especially those who move to places with high employment.