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Unemployment (Types, Causes, Policies for unemployment (Structural…
Unemployment
Types, Causes, Policies for unemployment
Frictional unemployment: 1. when ppl leave their jobs, 2. new entrants (e.g. graduates) enter labour market, unemployed during a period of time while looking for a new job
Cause: imperfect info. on both employers and job seekers causes a time lag before right candidates can be matched up to the suitable jobs
Policy: better job info. & improvements in the employment exchange services, establishment of labour exchange by govt., setting up of career portals to reduce time taken for job search
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Cyclical/ D deficient unemployment: unpredictable & irregular, associated w business cycle
Cause: recession, decrease in AD, decrease in NY and output, fewer workers required to prod. the fewer gds supplied to the mkt
Policy: expansionary monetary/fiscal policy to increase AD, reducing of structural rigidities to decrease COP and increase SRAS, leading to rise in employment
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Definition: no. of ppl of legal working age who are willing and able to work but are unable to find suitable employment.
NOTE: pls read the mindmap starting from "definition" in an anticlockwise direction for the main branches, from the top to bottom for the sub-branches (if u get what i mean), thank u!! (p.s. sry for the short forms HAHA if not it'll be v long)