Causes of unemployment research paper

Structural Unemployment Structural unemployment happens when there is a long-term decline in demand in an industry leading to fewer jobs as demand for labour falls away. Examples might include: Jobs on a production line being replaced by robots e. Globalisation leads to changes in the patterns of trade between countries.

Causes and effects of youth unemployment

Britain has probably now lost forever a cost advantage in manufacturing goods such as motor cars, household goods and audio-visual goods, UK manufacturing industry has lost jobs as some production has shifted to lower-cost centres in Eastern Europe and countries in Far East Asia. Many of these workers may suffer from a period of structural unemployment, particularly if they are in regions of above-average unemployment rates where job opportunities are scarce. Cyclical Unemployment: Cyclical unemployment is involuntary unemployment due to a lack of demand for goods and services.

This is also known as Keynesian unemployment or demand-deficient unemployment When there is a recession or a steep slowdown in growth, we see a rising unemployment because of plant closures, business failures and an increase in worker lay-offs and redundancies. This is due to a fall in demand leading to a contraction in output across many industries.


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Many jobs can be lost even in a slowdown phase and one reason for this is because of rising productivity. Say for example that a country's GDP is expanding at 1 per cent a year but output per worker is growing by 3 per cent. This means that the same national output can be produced using fewer workers.

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Cyclical unemployment has been a major problem for a number of European Union economies who have suffered from a deep and persistent recession in recent years. Cyclical unemployment is most likely to occur when there is a negative output gap. It is linked to structural unemployment.

Some link the rise of the internet as a cause of technological unemployment for example the US business Kodak went bust in with its , employees, in part the result of the rapid expansion of Instagram, which, when it was sold to Facebook employed just 13 people. Evidence over the long term is that innovation and the emergence and uptake of new technologies creates more jobs than it destroys.

Those most at risk from the creative destruction of new technologies are those with low and out-dated skills in the labour market. Subscribe to email updates from tutor2u Economics Join s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning. You're now subscribed to receive email updates!

Print page. Economics Study notes Unemployment Unemployment trap Structural unemployment Seasonal unemployment Frictional unemployment Cyclical unemployment Disguised unemployment Youth Unemployment Technology Capital labour substitution Show more Geoff Riley.

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You might also like. Seasonal Unemployment Student videos. Frictional Unemployment Student videos. Synoptic Economics: Falling Unemployment Student videos. To what extent should full-employment be the main macro policy objective? Employment vs. The Labor Force. Classifying Unemployed.

Measures of Unemployment. U The Real Unemployment Rate. The Unemployment Test. The Bottom Line. The basic definitions used by the BLS in compiling labor statistics are quite straightforward:. People with jobs are employed; People who are jobless, looking for jobs and available for work are unemployed; and People who are neither employed nor unemployed are not in the labor force. People are classified as unemployed if they fulfill the following three criteria:.


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  5. Do not have a job; Have actively looked for work in the prior four weeks; and Are currently available for work. Believe no job is available to them in their line of work; Have been unable to find work; Lack of the necessary schooling, skills or experience; or Face some form of discrimination from employers for example, being too young or too old.

    Research Proposal: Minority Youth Unemployment

    People without jobs; Those who would like to work but have not actively seeking jobs in the past four weeks due to issues such as child care, family obligations or other temporary problems; Discouraged workers who have stopped looking for work because they think it is futile; and Underemployed people, which includes those who are actually employed but are working fewer hours than they would like. A single mother who has been unemployed for three months, but is unavailable for work for the past two weeks in order to care for her sick child, would be classified as "not in the labor force. A year-old former executive who lost his job in a corporate restructuring a year ago is keen to return to the workforce.

    The Dynamics of Youth Unemployment

    However, after sending out more than resumes in the first three months of unemployment, he is discouraged by the fact that he has not received a single interview call or acknowledgment letter, and has stopped his job-hunting efforts. He would be excluded from the U-3 measure but would be included in the U-6 measure.

    A sales executive with a family to support and bills to pay has been unable to find full-time work after six months of unemployment. He finally takes up a three-month contract that entails only six hours of work a week. Compare Investment Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles.

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    Macroeconomics U3 vs. U6 Unemployment Rate: What's the Difference? Macroeconomics How is the U. Partner Links. Related Terms Unemployment Rate Definition The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

    Discouraged Worker Definition A discouraged worker is someone who is eligible for employment and can work, but is currently unemployed and has not attempted to find employment. Civilian Labor Force Definition Civilian labor force is a term used by the Bureau of Labor Statistics to refer to Americans whom it considers either employed or unemployed. Underemployment Definition Underemployment is a measure of employment and labor utilization in the economy that looks at how well the labor force is being utilized.

    Unemployment Definition Unemployment is the term for when a person who is actively seeking a job is unable to find work.


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    7. The authors say their findings suggest that suicide prevention strategies need to target those who lose their jobs even in countries unaffected by recession. They found the suicide risk among the unemployed was stronger where more people were in work and the situation of the jobless was therefore more unusual. What is more, our data suggests that not all job losses necessarily have an equal impact, as the effect on suicide risk appears to be stronger in countries where being out of work is uncommon. Unemployment was linked with 41, suicides in and 46, in , suggesting that 4, excess suicides were associated with the economic crisis in