UNEMPLOYMENT (APPLIED ECONOMICS)

SHS-GAS

1. Unemployment Rate Prepared by: Melody G. Genese – SHS TII

2. Unemployment as defined by the International Labour Organization occurs when people are without jobs and they have actively looked for work within the past four weeks.

3. Types of Unemployment

4. Frictional Unemployment is a temporary condition. This unemployment occurs when an individual is out of his current job and looking for another job. The time period of shifting between two jobs is known as frictional unemployment.

5. occurs due to the structural changes within an economy. This type of unemployment occurs when there is a mismatch of skilled workers in the labour market. Structural Unemployment

6. is also known as the real wage unemployment or disequilibrium unemployment. This type of unemployment occurs when trade unions and labour organization bargain for higher wages, which leads to fall in the demand for labour. Classical Unemployment

7. Cyclical Unemployment when there is a recession. When there is a downturn in an economy, the aggregate demand for goods and services decreases and demand for labour decreases. At the time of recession, unskilled and surplus labours become unemployed.

8. Seasonal Unemployment A type of unemployment that occurs due to the seasonal nature of the job is known as seasonal unemployment. The industries that are affected by seasonal unemployment are hospitality and tourism industries and also the fruit picking and catering industries.

9. Causes of Unemployment

10. 1. Rapid changes in technology 2. Recessions 3. Inflation 4. Disability 5. Willingness to work 6. Employee values 7. Discriminating factors in the place of work (may include discrimination on the basis of age, class , ethnicity, color and race).

11. Economic Effect

12. ACTIVITY