Unemployment

Definition

Unemployment occurs when a person who is actively searching for employment is unable to find work.the state of not having a job.the total number of people who do not have jobs in a particular place or area.

MLS 2-E GROUP1Economic DefinitionUnemployment is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment.

MLS 2-E GROUP1MLS 2-E GROUP1 Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force.

MLS 2-E GROUP1Causes of Unemployment1. Frictional UnemploymentThis is unemployment caused by the time people take to move between jobs, e.g. graduates or people changing jobs.

MLS 2-E GROUP12. Structural Unemployment

This occurs due to a mismatch of skills in the labour market it can be caused by:Occupational ImmobilitiesGeographical ImmobilitiesTechnological ChangeStructural changes is the economy

MLS 2-E GROUP13. Classical or Real Wage Unemployment

This occurs when ages could be pushed above the equilibrium level by minimum wages or trades unions. This is sometimes known as disequilibrium unemployment.MLS 2-E GROUP14. Voluntary Unemployment

This occurs when people choose to remain unemployed rather than take jobs available.Frictional unemployment is also a type of voluntary unemployment as they are choosing to wait until they find a better job.MLS 2-E GROUP15. Demand Deficient or Cyclical Unemployment

This occurs when the economy is below full capacity.MLS 2-E GROUP1Effects ofUnemploymentOn the government:

Fewer tax revenues Lower economic growth (GDP)Higher welfare costs Higher supply-sidecosts

MLS 2-E GROUP1On firms:

Fewer tax revenues Lower economic growth (GDP)Higher welfare costs Higher supply-sidecosts Lower wage costs Larger pool of labour Less demand for goods and services Increase in demand for inferior goods Higher training costs

MLS 2-E GROUP1On people:

Lower standard of living Loss of skills Loss of confidence/depression

MLS 2-E GROUP1Statistical Updates

Philippines

MLS 2-E GROUP1Asia

MLS 2-E GROUP1MLS 2-E GROUP1

MLS 2-E GROUP1World

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MLS 2-E GROUP1ENDMLS 2-E

Group 1

Members:Daulo, Louie CarlJavellana, Hazel ArabellePerez, Princes GemSonza, Hyacenth Grace