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Write 2 pages with APA style on ECON WEEK 3. ECON WEEK 3 Three types of unemployment The three types of unemployment are ly seasonal, frictional and structural unemployment. The seasonal fluctuations
Write 2 pages with APA style on ECON WEEK 3. ECON WEEK 3 Three types of unemployment The three types of unemployment are ly seasonal, frictional and structural unemployment. The seasonal fluctuations in the demand for labor leads to loss of occupation. This form of unemployment is referred to as seasonal unemployment. For example in some colder climatic areas, the workers are unemployed during winter due to weather drawbacks. Frictional unemployment is a form of unemployment that occurs due to the voluntary job search by the employees for better opportunities. Frictional unemployment occurs as the jobseekers tend to look out for the desired options by ignoring the available options. For example, an accountant would not be interested in the job vacancy published by a hospital. The structural unemployment refers to the loss of employment due to changes in technological demands and changes in the operational process (Oswego, 2014). For example, the automation of machine systems in the factories may lead to structural unemployment due to loss of demand for labor.
Desirability of unemployment
The unemployment scenario is considered to be undesirable as it leads to substantial gap between the potential GDP and the real GDP of the country. The reduction in the volume of products and services produced within the geographical boundary leads to the gap between the supply and demand in the market which finally leads to inflation in the economy (Schenk, 2014). However, all forms of unemployment are not undesirable as it has beneficial effects in the long run. For example, the loss of demand for existing labor force may occur due to structural unemployment that results from the introduction of new technology and automated systems in the production process. Although it increases unemployment in the short run but the gradual adaption of the workforce to the technologically improved processes leads to improvement in the operational efficiency and enhancement of the production volumes. In this view, structural form of unemployment is not undesirable.
Effect of internet
The advent of internet has the potential to completely eliminate frictional unemployment. This is due to the fact that the spread of the internet and World Wide Web have enhanced the power of voluntary job search by the candidates. Instead of readily available job opportunities, the candidates would look for the desired job opportunity on a voluntary basis that would lead to loss of job in certain sectors. However, there would be other candidates who would look for jobs in these sectors and the internet would be a useful tool to provide them the information on the desired job vacancies. The activities in the internet comprise of job notifications published by the employers and searching various job portals by the employees. Thus the internet would act as the perfect medium for interaction between the employers and the employees. The candidates would be able to find the right job through voluntary search and the employers would also be able to hire the right candidates by screening the information of the potential candidates. The voluntary job search through the internet would provide the employees with worldwide and instant access in selecting the right job opportunity which would help to eliminate the frictional unemployment.
References
Oswego. (2014). Types of Unemployment. Retrieved from: http://www.oswego.edu/~economic/eco200/chap8.htm.
Schenk, R. (2014). The Unemployment Rate. Retrieved from: http://www.saylor.org/content/econ_schenk/Measuring/Unemployment.html.
