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Writing - Essay Example

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It occurs as a result of there being an absence of the demand for the workers that are available in a Company (Tucker 171). In this case, the closing down of the factory as a result of excessive contraction left most of the…
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Types of unemployment and unemployment benefits Marcelle’s Case Marcelle is experiencing structural unemployment. It occurs as a result of there being an absence of the demand for the workers that are available in a Company (Tucker 171). In this case, the closing down of the factory as a result of excessive contraction left most of the workers with no job to hang on. One way in which structural unemployment occurs is when some labor markets contract more workers than the job opportunities available. For some reasons, the wages of the Company do not decrease to bring the overall market into equilibrium. Another reason for this form of unemployment could be due to contraction of too many workers who have skills that are not in high demand within the market and lack the skills that are highly required.
In simple words, Marcelle’s unemployment case occurred as a result of a mismatch in the skills of the workers versus their employer’s needs. The unemployment case is a significant problem since it tends to be largely of the long-term variety. Retaining unnecessary workers within an organization is not an easy or cheap task. Another good example of a similar case that causes structural unemployment is the UK motor vehicle production company. Over the last 20 years, the company has declined while a similar company in the Far East has doubled up its production. The situation has created structurally unemployed workers who are at times entitled to unemployment benefits. You probably qualify for the unemployment benefits if your employer lays you off your responsibilities due to lack of work.
Dominic’s unemployment case
Dominic’s case can be classified as frictional unemployment. It comes as a result of him moving between different locations (Tucker 170). Apart from moving to a new location, this form of unemployment could occur when a worker loses their job before they find a new one. For this case, one must look around for a job that suits their specialization, and this could take up considerable time. During the job search period, one is considered unemployed. Some states take time to make decisions concerning the eligibility of such cases to qualify for unemployment benefits. But, most workers who voluntarily quit their job, are fired, on leave or rather suspended by their employer are subject to such benefits.
Francine’s unemployment case
Francine case is described as seasonal unemployment. For this case, unemployment is higher during certain periods and lower on other occasions (Tucker 176). It occurs during recessions, especially whenever the demand for the goods and services within an economy falls. Most companies respond to such changes by requiring seasonal workers rather than releasing some permanent workers to reduce the prices and wages as well as cut down on the costs of production. The form of unemployment occurs since there are many workers within an economy during certain periods of time than opportunities can accommodate. Most workers experiencing seasonal unemployment are not entitled to unemployment benefits.
Beauvoir’s unemployment case
Beauvoir’s is experiencing structural unemployment. Specifically, this unemployment case is occurring as a result of changes in technology (Tucker 171). Personal computers keep replacing earlier forms of technology such as typewriters. Workers who do not adopt the new changes in technology are likely to find themselves unemployment. Such workers are entitled to unemployment benefits as long as their employer lays them off for a genuine reason.
Conclusion
In the economics industry, unemployment occurs when workers are laid off from their duties by their employers and are actively searching for employment. The major causes, their consequences, and solutions vary widely based on the specific type of unemployment that a worker is experiencing. Even though most forms of unemployment qualify for benefits, compensation is never a guarantee.
Works Cited
Tucker, Irvin B. Macroeconomics for today. Mason, OH: South-Western Cengage Learning, 2011. Print. Read More
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