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Unemployment in Macroeconomic Theory - Essay Example

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This essay discusses the central issue of unemployment in macroeconomics. It also aims to provide a viable solution to the issue, as each country must effectively address the unemployment issue to ensure economic development. They are many types of unemployment with specific causes and effects. …
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Unemployment in Macroeconomic Theory
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Download file to see previous pages The farmer will not get the job of the mismatch skills. Another cause of structural unemployment is the geographical immobility. This is a situation where an individual is not able to move to another place for a job opportunity. He or she mays decided to remain jobless due to the fact that he or she cannot move to another geographical area even if a job is guaranteed. Some of the reasons behind are family’s issues or health issues. One can leave a job opportunity and remain close to the family. Change in technology can also cause structural unemployment. This is because some people are resistant to change. When new technology is introduced, they find it difficult to adapt to its use. Some are forced to quit their jobs due to the technology illiteracy. However, structural unemployment issue can solved if people accept to go for retraining if they want to be considered in re-employment. People searching for jobs should also accept to change their geographical locations if the job opportunity demands them to. Furthermore those who are working in technology driven companies should be able to adjust to the changes in technology. Another type of unemployment is the frictional unemployment. This type of unemployment occurs when one leaves the current and become unemployed when he or she is still looking for another job. Some can leave their jobs just to have time to relax themselves (Wessels, 93). The main cause of this type of unemployment is the movement of people between jobs, locations or careers. One of the cause of this unemployment is when someone is fresh from college and do not understand the labor markets. The graduate will be expecting to get a better paying job. During this time...
The intention of this study is to provide comprehensive theoretic analysis of the issue of unemployment and also determines the ways of addressing this problem, in order to achieve high levels of economic development. There are many effects that are caused by unemployment, which can either be direct or indirect.
Unemployment is situations where people who get job they are searching. These people do have any income. They have to look for other options that will help them get jobs. Unemployment can either be voluntary or involuntary. Voluntary unemployment is where one renders himself or herself jobless knowingly. This is caused by many factors both economical and in the markets.
Another type of unemployment is the structural unemployment. This is a type of unemployment where capital labor situations make people to be unemployed. These capital labor situations reduced labor demand. Structural unemployment always occurs when the new job vacancies mismatch with the skills that are available. Frictional unemployment occurs when one leaves the current and become unemployed when he or she is still looking for another job. Some can leave their jobs just to have time to relax themselves
Cyclic unemployment is the most volatile type. It is caused by lack of goods and services demand. It is sometimes referred to as demand deficient unemployment because it is related to the economic capacity. It always occurs when GDP growth rate moves in moves in different direction with the rate of employment.
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