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UNEMPLOYMENT :warning:refers to ppl who are registered as able, available…
UNEMPLOYMENT :warning:refers to ppl who are registered as able, available & willing to work at the going wage rate in a suitable job but who cannot find paid employment despite an active search of work
CYCLICAL UNEMPLOYMENT(dd-deficient UN): :explode:cause by lack of AD & fluctuations in the business cycle
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Economy not doing well--> foreigners buy less--> X FALLS--> AD FALLS--> REAL O/P FALLS--> dd for FOP falls thus leads to dd-deficient UN (retrenched workers)
fall in AD causes AD curve to shift leftwards from AD to AD' --> REAL O/P DECREASES TO Y' & GPL FALLS,ceteris paribus--> As firms DECREASE THEIR PRODUCTION--> DD FOR LABOUR FALLS-->wages & employment falls
SINGAPORE CONTEXT : SG small & open economy--> external dd affected by unstable regional & global environment
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STRUCTURAL UNEMPLOYMENT :explode:cause by mismatch of skills between the unemployed & skills required by producers seeking FOP
occurs when economy undergoes structural changes due to changing consumer dd & tech-->result in certain industries & skills being obsolete + create dd for other industries & skills :!!:
Rising competition from low-cost producing countries SUCH AS CHINA & INDIA--> SG forced to shift its focus to higher value-added industries to avoid direct competition with these industries
Areas such as biomedical, water tech & water fabrication--> SUNRISE INDUSTRIES
Workers who lost their jobs in the SUNSET INDUSTRIES may not have skills to undertake jobs in these sunrise industries as they require specialised skills & training
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FRICTIONAL UNEMPLOYMENT :explode:cause by job search in the process of transiting between jobs NOT A SERIOUS PROBLEM
Occurs due to time lag when ppl change jobs, shifting from 1 company to another
exists cos of imperfections in the labour mkt which occur cos info. on job opportunities tends to be incomplete/inadequate
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