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chapter 9: unemployment, - Coggle Diagram
chapter 9: unemployment
definition: number of people of the legal working age who are willing and able to work but are unable to find suitable employment
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types of unemployment
structural unemployment
mismatch of skills leading to unemployment due to changing structure of economy --> due to 1 change in demand pattern (changes in consumers T&P) 2 new labour-saving tech or 3 movement of industries to new location
provision of retraining facilities, providing incentives like grants and subsidies to encourage developing sought after skills, encouraging growing industries to move into depressed areas
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frictional unemployment
imperfect info --> time lag before qualified unemployed workers are matched with existing job opening
better job information and improvements in the employment exchange services e.g. labour exchange to provide info pool for workers and employers, online job portals, career advisory services like SkillsFuture and career talks and job fairs
seasonal unemployment
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implement work-sharing programmes, rearranging production process or adding other lines of production
real wage unemployment
real wages forced above market clearing level (strong power of trade unions/ minimum wage laws) --> excess of labour ss over labour dd (think of price floor diagram)
setting wages realistically to reflect dd and ss conditions by restricting power of trade unions and reducing or removing legal minimum wage
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