Beruflich Dokumente
Kultur Dokumente
Unemployment (or joblessness) occurs when people are without work and actively seeking work.
[1]
The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a
percentage by dividing the number of unemployed individuals by all individuals currently in the labor
force. During periods of recession, an economy usually experiences a relatively high unemployment
rate.[2] According to International Labour Organization report, more than 197 million people globally
or 6% of the world's workforce were without a job in 2012.[3]
There remains considerable theoretical debate regarding the causes, consequences and solutions
for unemployment. Classical economics, New classical economics, and the Austrian School of
economics argue that market mechanisms are reliable means of resolving unemployment. These
theories argue against interventions imposed on the labor market from the outside, such as
unionization, bureaucratic work rules, minimum wage laws, taxes, and other regulations that they
claim discourage the hiring of workers.
Keynesian economics emphasizes the cyclical nature of unemployment and recommends
government interventions in the economy that it claims will reduce unemployment during recessions.
This theory focuses on recurrent shocks that suddenly reduce aggregate demand for goods and
services and thus reduce demand for workers. Keynesian models recommend government
interventions designed to increase demand for workers; these can include financial stimuli, publicly
funded job creation, and expansionist monetary policies. Keynes believed that the root cause of
unemployment is the desire of investors to receive more money rather than produce more products,
which is not possible without public bodies producing new money.[4]
In addition to these comprehensive theories of unemployment, there are a few categorizations of
unemployment that are used to more precisely model the effects of unemployment within the
economic system. The main types of unemployment include structural unemployment which focuses
on structural problems in the economy and inefficiencies inherent in labour markets, including a
mismatch between the supply and demand of laborers with necessary skill sets. Structural
arguments emphasize causes and solutions related to disruptive technologies and globalization.
Discussions of frictional unemployment focus on voluntary decisions to work based on each
individuals' valuation of their own work and how that compares to current wage rates plus the time
and effort required to find a job. Causes and solutions for frictional unemployment often address job
entry threshold and wage rates. Behavioral economists highlight individual biases in decision
making, and often involve problems and solutions concerning sticky wages andefficiency wages.
Contents
[hide]
2 Measurement
o
2.3 Alternatives
3 Effects
o
3.1 Costs
3.1.1 Individual
3.1.2 Social
3.1.3 Socio-political
3.2 Benefits
5 History
o
6 See also
7 References
8 Further reading
9 External links
Classical unemployment[edit]
Classical or real-wage unemployment occurs when real wages for a job are set above the marketclearing level, causing the number of job-seekers to exceed the number of vacancies.
Many economists have argued that unemployment increases with increased governmental
regulation.[citation needed] For example, minimum wage laws raise the cost of some low-skill laborers above
market equilibrium, resulting in increased unemployment as people who wish to work at the going
rate cannot (as the new and higher enforced wage is now greater than the value of their labor). [5]
[6]
Laws restricting layoffs may make businesses less likely to hire in the first place, as hiring
becomes more risky.[6]
However, this argument overly simplifies the relationship between wage rates and unemployment,
ignoring numerous factors, which contribute to unemployment.[7][8][9][10][11]Some, such as Murray
Rothbard, suggest that even social taboos can prevent wages from falling to the market-clearing
level.[12]
In Out of Work: Unemployment and Government in the Twentieth-Century America,
economists Richard Vedder and Lowell Gallaway argue that the empirical record of wages rates,
productivity, and unemployment in American validates classical unemployment theory. Their data
shows a strong correlation between adjusted real wage and unemployment in the United States from
1900 to 1990. However, they maintain that their data does not take into account exogenous events.
[13]
Cyclical unemployment[edit]
The IS-LM Model is used to analyze the effect of demand shocks on the economy.
Marxists also share the Keynesian viewpoint of the relationship between economic demand and
employment, but with the caveat that the market system's propensity to slash wages and reduce
labor participation on an enterprise level causes a requisite decrease in aggregate demand in the
economy as a whole, causing crises of unemployment and periods of low economic activity before
the capital accumulation (investment) phase of economic growth can continue.
According to Karl Marx, unemployment is inherent within the unstable capitalist system and periodic
crises of mass unemployment are to be expected. The function of theproletariat within the capitalist
system is to provide a "reserve army of labour" that creates downward pressure on wages. This is
accomplished by dividing the proletariat into surplus labour (employees) and under-employment
(unemployed).[17] This reserve army of labour fight among themselves for scarce jobs at lower and
lower wages.
At first glance, unemployment seems inefficient since unemployed workers do not increase profits.
However, unemployment is profitable within the global capitalist system because unemployment
lowers wages which are costs from the perspective of the owners. From this perspective low wages
benefit the system by reducing economic rents. Yet, it does not benefit workers. Capitalist systems
unfairly manipulate the market for labour by perpetuating unemployment which lowers laborers'
demands for fair wages. Workers are pitted against one another at the service of increasing profits
for owners.
According to Marx, the only way to permanently eliminate unemployment would be to abolish
capitalism and the system of forced competition for wages and then shift to a socialist or communist
economic system. For contemporary Marxists, the existence of persistent unemployment is proof of
the inability of capitalism to ensure full employment. [18]
Full employment[edit]
Main article: Full employment
Short-Run Phillips Curve before and after Expansionary Policy, with Long-Run Phillips Curve (NAIRU). Note,
however, that the unemployment rate is an inaccurate predictor of inflation in the long term.[19][20]
exists when the labour market is in equilibrium and there is pressure for neither rising inflation rates
nor falling inflation rates. An alternative technical term for this rate is the NAIRU or the NonAccelerating Inflation Rate of Unemployment. No matter what its name, demand theory holds that
this means that if the unemployment rate gets "too low," inflation will accelerate in the absence of
wage and price controls (incomes policies).
One of the major problems with the NAIRU theory is that no one knows exactly what the NAIRU is
(while it clearly changes over time).[19]The margin of error can be quite high relative to the actual
unemployment rate, making it hard to use the NAIRU in policy-making.[20]
Another, normative, definition of full employment might be called the ideal unemployment rate. It
would exclude all types of unemployment that represent forms of inefficiency. This type of "full
employment" unemployment would correspond to only frictional unemployment (excluding that part
encouraging the McJobs management strategy) and would thus be very low. However, it would be
impossible to attain this full-employment target using only demand-side Keynesian stimulus without
getting below the NAIRU and causing accelerating inflation (absent incomes policies). Training
programs aimed at fighting structural unemployment would help here.
To the extent that hidden unemployment exists, it implies that official unemployment statistics
provide a poor guide to what unemployment rate coincides with "full employment". [19]
Structural unemployment[edit]
Main article: Structural unemployment
Structural unemployment occurs when a labour market is unable to provide jobs for everyone who
wants one because there is a mismatch between the skills of the unemployed workers and the skills
needed for the available jobs. Structural unemployment is hard to separate empirically from frictional
unemployment, except to say that it lasts longer. As with frictional unemployment, simple demandside stimulus will not work to easily abolish this type of unemployment.
Structural unemployment may also be encouraged to rise by persistent cyclical unemployment: if an
economy suffers from long-lasting low aggregate demand, it means that many of the unemployed
become disheartened, while their skills (including job-searching skills) become "rusty" and obsolete.
Problems with debt may lead to homelessness and a fall into the vicious circle of poverty.
This means that they may not fit the job vacancies that are created when the economy recovers. The
implication is that sustained highdemand may lower structural unemployment. This theory of
persistence in structural unemployment has been referred to as an example of path dependence or
"hysteresis".
Much technological unemployment,[22] due to the replacement of workers by machines, might be
counted as structural unemployment. Alternatively, technological unemployment might refer to the
way in which steady increases in labour productivity mean that fewer workers are needed to produce
the same level of output every year. The fact that aggregate demand can be raised to deal with this
problem suggests that this problem is instead one of cyclical unemployment. As indicated by Okun's
Law, the demand side must grow sufficiently quickly to absorb not only the growing labour force but
also the workers made redundant by increased labour productivity.
Seasonal unemployment may be seen as a kind of structural unemployment, since it is a type of
unemployment that is linked to certain kinds of jobs (construction work, migratory farm work). The
most-cited official unemployment measures erase this kind of unemployment from the statistics
using "seasonal adjustment" techniques. This results in substantial, permanent structural
unemployment.
Frictional unemployment[edit]
Main article: Frictional unemployment
The Beveridge curve of 2004 job vacancy and unemployment rate from the United States Bureau of Labour
Statistics.
Frictional unemployment is the time period between jobs when a worker is searching for, or
transitioning from one job to another. It is sometimes called search unemployment and can be
voluntary based on the circumstances of the unemployed individual. Frictional unemployment is
always present in an economy, so the level of involuntary unemployment is properly the
unemployment rate minus the rate of frictional unemployment, which means that increases or
decreases in unemployment are normally under-represented in the simple statistics. [23]
Frictional unemployment exists because both jobs and workers are heterogeneous, and a mismatch
can result between the characteristics of supply and demand. Such a mismatch can be related to
skills, payment, work-time, location, seasonal industries, attitude, taste, and a multitude of other
factors. New entrants (such as graduating students) and re-entrants (such as former homemakers)
can also suffer a spell of frictional unemployment.
Workers as well as employers accept a certain level of imperfection, risk or compromise, but usually
not right away; they will invest some time and effort to find a better match. This is in fact beneficial to
the economy since it results in a better allocation of resources. However, if the search takes too long
and mismatches are too frequent, the economy suffers, since some work will not get done.
Therefore, governments will seek ways to reduce unnecessary frictional unemployment through
multiple means including providing education, advice, training, and assistance such asdaycare
centers.
The frictions in the labour market are sometimes illustrated graphically with a Beveridge curve, a
downward-sloping, convex curve that shows a correlation between the unemployment rate on one
axis and the vacancy rate on the other. Changes in the supply of or demand for labour cause
movements along this curve. An increase (decrease) in labour market frictions will shift the curve
outwards (inwards).
Hidden unemployment[edit]
Hidden, or covered, unemployment is the unemployment of potential workers that is not reflected in
official unemployment statistics, due to the way the statistics are collected. In many countries only
those who have no work but are actively looking for work (and/or qualifying for social security
benefits) are counted as unemployed. Those who have given up looking for work (and sometimes
those who are on Government "retraining" programs) are not officially counted among the
unemployed, even though they are not employed.
The statistic also does not count the "underemployed" those working fewer hours than they would
prefer or in a job that doesn't make good use of their capabilities. In addition, those who are of
working age but are currently in full-time education are usually not considered unemployed in
government statistics. Traditional unemployed native societies who survive by gathering, hunting,
herding, and farming in wilderness areas, may or may not be counted in unemployment statistics.
Official statistics often underestimate unemployment rates because of hidden unemployment.
Long-term unemployment[edit]
This is defined in European Union statistics, as unemployment lasting for longer than one year. The
United States Bureau of Labor Statistics (BLS), which reports current long-term unemployment rate
at 1.9 percent, defines this as unemployment lasting 27 weeks or longer. Long-term unemployment
is a component of structural unemployment, which results in long-term unemployment existing in
every social group, industry, occupation, and all levels of education. [24] Current long- term
unemployment is a result of a 6 year period of weak business hiring, which is the cause of an
aggregate demand shortfall. Another factor of current long-term unemployment is the stigma
attached to it that makes it harder for people seeking jobs to find employment in low and medium
skill jobs because those employers care about long-term unemployment, while high skill jobs mainly
focus on an applicants past experiences instead of their long-term unemployment. [25] In response to
current rates of long-term unemployment in the United States, which accounts for 31.9% of total
unemployment, President Barack Obama implemented policies in January 2014 to assist those who
desire to re-enter the work place but are struggling. As of October 15, 2014, the Department of
Labor's H-1B funds are providing 23 grants, a total of $170 million, for programs in 20 states and
Puerto Rico to help the long-term unemployed re-enter the workforce. The grants were divided
between non-profits, local government, and employers to train and match long-term unemployed job
seekers for in-demand jobs. The Obama Administration announced a call to action for over 300
businesses to implement best practices for hiring and recruiting the long-term unemployed to provide
these candidates an equal chance throughout the hiring process. Along with businesses, the Office
of Personnel Management is providing guidance to Federal agencies to establish a trend of fair
treatment and consideration for people who are long-term unemployed candidates applying for
employment by Federal agencies.[26]
Measurement[edit]
There are also different ways national statistical agencies measure unemployment. These
differences may limit the validity of international comparisons of unemployment data. [27]To some
degree these differences remain despite national statistical agencies increasingly adopting the
definition of unemployment by the International Labour Organization.[28]To facilitate international
comparisons, some organizations, such as the OECD, Eurostat, and International Labor
Comparisons Program, adjust data on unemployment for comparability across countries.
Though many people care about the number of unemployed individuals, economists typically focus
on the unemployment rate. This corrects for the normal increase in the number of people employed
due to increases in population and increases in the labour force relative to the population. The
unemployment rate is expressed as a percentage, and is calculated as follows:
5.16%
6.17%
7.18%
8.19%
9.110%
10.111%
11.113%
13.122.9%
Estimated U.S. Unemployment rate from 18001890. All data are estimates
based on data compiled by Lebergott.[49] See limitations section below
regarding how to interpret unemployment statistics in self-employed,
agricultural economies. See image info for complete data.
Alternatives[edit]
Limitations of the unemployment definition[edit]
Some critics believe that current methods of measuring
unemployment are inaccurate in terms of the impact of
unemployment on people as these methods do not take into
account the 1.5% of the available working population incarcerated
in U.S. prisons (who may or may not be working while
incarcerated), those who have lost their jobs and have
become discouraged over time from actively looking for work, those
who are self-employed or wish to become self-employed, such as
tradesmen or building contractors or IT consultants, those who have
retired before the official retirement age but would still like to work
(involuntary early retirees), those on disability pensions who, while
not possessing full health, still wish to work in occupations suitable
for their medical conditions, those who work for payment for as little
as one-hour per week but would like to work full-time.[54]
theNBER does not use the unemployment rate but prefer various
employment rates to date recessions.[58]
Labor force participation rate[edit]
The labor force participation rate is the ratio between the labor
force and the overall size of their cohort (national population of the
same age range). In the West during the later half of the 20th
century, the labor force participation rate increased significantly,
largely due to the increasing number of women entering the
workplace.
In the United States, there were three significant stages of women's
increased participation in the labor force. During the late 19th
century through the 1920s, very few women worked outside the
home. They were young single women who typically withdrew from
labor force at marriage unless family needed two incomes. These
women worked primarily in the textile manufacturing industry or
as domestic workers. This profession empowered women and
allowed them to earn a living wage. At times, they were a financial
help to their families.
Between 1930 and 1950, women labor force participation has
increased primarily due to the increased demand for office workers,
women participation in the high school movement, and due
to electrification which reduced the time spent on household chores.
In the 1950s to the 1970s, most women were secondary earners
working mainly as secretaries, teachers, nurses, and librarians
(pink-collar jobs).
Claudia Goldin and others, specifically point that by the mid-1970s
there was a period of revolution of women in the labor force brought
on by a source of different factors. Women more accurately planned
for their future in the work force, investing in more applicable majors
in college that prepared them to enter and compete in the labor
market. In the United States, the labor force participation rate rose
from approximately 59% in 1948 to 66% in 2005,[59] with participation
among women rising from 32% to 59%[60] and participation among
men declining from 87% to 73%.[61][62]
A common theory in modern economics claims that the rise of
women participating in the U.S. labor force in the late 1960s was
due to the introduction of a new contraceptive technology, birth
control pills, and the adjustment of age of majority laws. The use of
birth control gave women the flexibility of opting to invest and
advance their career while maintaining a relationship. By having
control over the timing of their fertility, they were not running a risk
of thwarting their career choices. However, only 40% of the
population actually used the birth control pill.
This implies that other factors may have contributed to women
choosing to invest in advancing their careers. One factor may be
that more and more men delayed the age of marriage, allowing
women to marry later in life without worrying about the quality of
older men. Other factors include the changing nature of work, with
machines replacing physical labor, eliminating many traditional male
occupations, and the rise of the service sector, where many jobs are
gender neutral.
Another factor that may have contributed to the trend was The
Equal Pay Act of 1963, which aimed at abolishing wage disparity
based on sex. Such legislation diminished sexual discrimination and
encouraged more women to enter the labor market by receiving fair
remuneration to help raising families and children.
At the turn of the 21st century the labor force participation began to
reverse its long period of increase. The biggest drop occurring over
the period from 2007 to 2011 where participation declined from 66%
to 64.1%. Roughly half of this decline can be attributed to cyclical
factors and half to long-term trend factors. These long-term trend
factors include a rising share of older workers and an increase in
school enrollment rates among young workers.[63]
The labor force participation rate can decrease when the rate of
growth of the population outweighs that of the employed and
unemployed together. The labor force participation rate is a key
component in long-term economic growth, almost as important
as productivity.
Participation rates are defined as follows:
Pop = total population
LF = labor forc
p = participatio
E = number employed
e = rate of emp
U = number of unemployed
u = rate of unem
The labor force participation rate explains how an increase in the
unemployment rate can occur simultaneously with an increase in
employment. If a large amount of new workers enter the labor force
but only a small fraction become employed, then the increase in the
number of unemployed workers can outpace the growth in
employment.[64]
Unemployment ratio[edit]
The unemployment ratio calculates the share of unemployed for the
whole population. Particularly many young people between 15 and
24 are studying full-time and are therefore neither working nor
looking for a job. This means they are not part of the labour force
which is used as the denominator for calculating the unemployment
rate.[65] The youth unemployment ratios in the European Union range
from 5.2 (Austria) to 20.6 percent (Spain). These are considerably
lower than the standard youth unemployment rates, ranging from
7.9 (Germany) to 57.9 percent (Greece).[66]
Effects[edit]
High and persistent unemployment, in which economic
inequality increases, has a negative effect on subsequent long-run
economic growth. Unemployment can harm growth not only
because it is a waste of resources, but also because it generates
redistributive pressures and subsequent distortions, drives people
to poverty, constrains liquidity limiting labor mobility, and erodes
self-esteem promoting social dislocation, unrest and conflict.[67] 2013
Economics Nobel prize winner Robert J. Shiller said that rising
inequality in the United States and elsewhere is the most important
problem.[68]
Costs[edit]
Individual[edit]
Benefits[edit]
Main article: Full employment
The primary benefit of unemployment is that people are available
for hire, without being headhunted away from their existing
employers. This permits new and old businesses to take on staff.
Unemployment is argued to be "beneficial" to the people who are
not unemployed in the sense that it averts inflation, [citation needed] which
1937
1938
1939
1940
1941
Workers employed
WPA
1,995
2,227
1,932
2,911
1,971
1,638
712
801
643
793
877
919
554
663
452
488
468
681
602
1,306
1,852
2,132
2,308
2,517
2,946
1,484
1,611
1,647
1,570
1,206
Totals
Total families helped
5,886
5,660
5,474
6,751
5,860
5,167
9,030
7,700
10,390
9,480
8,120
5,560
Coverage (cases/unemployed)
65%
74%
53%
71%
72%
93%
Demand-side solutions[edit]
Many countries aid the unemployed through social welfare
programs. These unemployment benefits includeunemployment
insurance, unemployment compensation, welfare and subsidies to
aid in retraining. The main goal of these programs is to alleviate
short-term hardships and, more importantly, to allow workers more
time to search for a job.
A direct demand-side solution to unemployment is governmentfunded employment of the able-bodied poor. This was notably
implemented in Britain from the 17th century until 1948 in the
institution of the workhouse, which provided jobs for the
unemployed with harsh conditions and poor wages to dissuade their
use. A modern alternative is a job guarantee, where the government
guarantees work at a living wage.
Temporary measures can include public works programs such as
the Works Progress Administration. Government-funded
employment is not widely advocated as a solution to
unemployment, except in times of crisis; this is attributed to the
public sector jobs' existence depending directly on the tax receipts
from private sector employment.
Tax decreases on high income earners (top 10%) are not correlated with
employment growth, however, tax decreases on lower income earners
(bottom 90%) are correlated with employment growth.[93][93]
Supply-side solutions[edit]
However, the labour market is not 100% efficient: It does not clear,
though it may be more efficient than bureaucracy. Some argue that
minimum wages and union activity keep wages from falling, which
means too many people want to sell their labour at the going price
but cannot. This assumes perfect competition exists in the labour
market, specifically that no single entity is large enough to affect
wage levels and that employees are similar in ability.
Advocates of supply-side policies believe those policies can solve
this by making the labour market more flexible. These include
removing the minimum wage and reducing the power of unions.
Supply-siders argue the reforms increase long-term growth by
reducing labour costs. This increased supply of goods and services
requires more workers, increasing employment. It is argued that
supply-side policies, which include cutting taxes on businesses and
reducing regulation, create jobs, reduce unemployment and
decrease labour's share of national income. Other supply-side
policies include education to make workers more attractive to
employers.
History[edit]
There are relatively limited historical records on unemployment
because it has not always been acknowledged or measured
systematically. Industrialization involves economies of scale that
often prevent individuals from having the capital to create their own
jobs to be self-employed. An individual who cannot either join an
enterprise or create a job is unemployed. As individual farmers,
ranchers, spinners, doctors and merchants are organized into large
enterprises, those who cannot join or compete become
unemployed.
Recognition of unemployment occurred slowly as economies across
the world industrialized and bureaucratized. Before this,
traditional self sufficient native societies have no concept of
unemployment. The recognition of the concept of "unemployment"
is best exemplified through the well documented historical records
in England. For example, in 16th century England no distinction was
made between vagrants and the jobless; both were simply
categorized as "sturdy beggars", to be punished and moved on.[94]
The closing of the monasteries in the 1530s increased poverty, as
the church had helped the poor. In addition, there was a significant
rise in enclosure during the Tudor period. Also the population was
rising. Those unable to find work had a stark choice: starve or break
the law. In 1535, a bill was drawn up calling for the creation of a
system of public works to deal with the problem of unemployment,
to be funded by a tax on income and capital. A law passed a year
later allowed vagabonds to be whipped and hanged. [95]
In 1547, a bill was passed that subjected vagrants to some of the
more extreme provisions of the criminal law, namely two years
servitude and branding with a "V" as the penalty for the first offense
and death for the second.[96] During the reign of Henry VIII, as many
as 72,000 people are estimated to have been executed. [97] In the
1576 Act each town was required to provide work for the
unemployed.[98]
The Elizabethan Poor Law of 1601, one of the world's first
government-sponsored welfare programs, made a clear distinction
between those who were unable to work and those able-bodied
people who refused employment.[99] Under the Poor Law systems
of England and Wales, Scotland and Ireland a workhouse was a
place where people who were unable to support themselves, could
go to live and work.[100]
20th century[edit]
There were labor shortages during WW I.[22] Ford Motor Co. doubled
wages to reduce turnover. After 1925 unemployment began to
gradually rise.[104]
Great Depression[edit]
Main article: Great Depression
The decade of the 1930s saw the Great Depression impact
unemployment across the globe. One Soviet trading corporation in
New York averaged 350 applications a day from Americans seeking
jobs in the Soviet Union.[105] In Germany the unemployment rate
reached nearly 25% in 1932.[106]
In some towns and cities in the north east of England,
unemployment reached as high as 70%; the national unemployment
level peaked at more than 22% in 1932.[107] Unemployment in
Canada reached 27% at the depth of the Depression in 1933.[108] In
1929, the U.S. unemployment rate averaged 3%.[109] In 1933, 25% of
all American workers and 37% of all nonfarm workers were
unemployed.[110]
Fredrick Mills found that in the U.S., 51% of the decline in work
hours was due to the fall in production and 49% was from increased
productivity.[114] By 1972 unemployment in the UK had crept back up
above 1,000,000, and was even higher by the end of the decade,
with inflation also being high. Although the monetarist economic
policies of Margaret Thatcher's Conservative government saw
inflation reduced after 1979, unemployment soared in the early
1980s, exceeding 3,000,000 a level not seen for some 50 years
by 1982. This represented one in eight of the workforce, with
unemployment exceeding 20% in some parts of the United Kingdom
which had relied on the now-declining industries such as coal
mining.[115]
However, this was a time of high unemployment in all major
industrialised nations.[116] By the spring of 1983, unemployment in
the United Kingdomhad risen by 6% in the previous 12 months;
compared to 10% in Japan, 23% in the United States of
America and 34% in West Germany (seven years
before reunification).[117]
Unemployment in the United Kingdom remained above 3,000,000
until the spring of 1987, by which time the economy was enjoying a
boom.[115] By the end of 1989, unemployment had fallen to
1,600,000. However, inflation had reached 7.8% and the following
year it reached a nine-year high of 9.5%; leading to increased
interest rates.[118]
Another recession began during 1990 and lasted until 1992.
Unemployment began to increase and by the end of 1992 nearly
3,000,000 in the United Kingdom were unemployed. Then came a
strong economic recovery.[115] With inflation down to 1.6% by 1993,
unemployment then began to fall rapidly, standing at 1,800,000 by
early 1997.[119]
21st century[edit]
See also[edit]
Business and economics portal
Basic income
Employment rate
Graduate unemployment
HIRE Act
Job migration
Short time
Shapiro-Stiglitz theory
Male unemployment
Spatial mismatch
Training
Unemployment extension
Volunteering
Waithood
Workfare
Youth exclusion
Youth unemployment
References[edit]
1. ^ Jump up to:a b International Labor Organization (October
1982). "Resolution concerning statistics of the economically
active population, employment, unemployment, and
underemployment, adopted by the Thirteenth International
Conference of Labor Statisticians; see page 4"(PDF).
Retrieved 26 November 2007.
79. Jump up^ Why are We Afraid to Create the Jobs We Need?,
Les Leopold, 5 March 2010
80. Jump up^ "Whatever happened to full employment?". BBC
News. 13 October 2011.
81. Jump up^ He, Xiaohong (1998). "From Trade Among Nations
to Trade Within Firms Across National Borders". In Mucchielli,
Jean Louis; Buckley, Peter J.; Cordell, Victor V. Globalization
and Regionalization: Strategies, Policies, and Economic
Environments. Binghamton, NY: International Business Press.
pp. 1573. ISBN 0-7890-0513-1.
82. Jump up^ Shapiro, Carl; Stiglitz, Joseph E. (1984).
"Equilibrium Unemployment as a Worker Discipline
Device". American Economic Review 74 (3): 433
444. JSTOR 1804018.
83. Jump up^ "Efficiency wages, the Shapiro-Stiglitz
Model" (PDF). Retrieved 27 July 2011.
84. Jump up^ Sullivan, Arthur; Steven M. Sheffrin
(2003). Economics: Principles in action. Upper Saddle River,
NJ: Pearson Prentice Hall. p. 335. ISBN 0-13-063085-3
85. Jump up^ Richard, Michael Graham (2 June 2008). "CounterPoint: 4 Reasons Why Recession is BAD for the
Environment". TreeHugger.
86. Jump up^ "The Idle Foundation".
87. Jump up^ "Hours of Work in U.S. History". 2010.[dead link]
88. Jump up^ Whaples, Robert (1991). "The Shortening of the
American Work Week: An Economic and Historical Analysis of
Its Context, Causes, and Consequences". Journal of
Economic History 51 (2): 454
457. doi:10.1017/s0022050700039073. JSTOR 2122588.
89. Jump up^ Bell, Spurgeon (1940). Productivity, Wages and
National Income, The Institute of Economics of the Brookings
Institution.
90. Jump up^ Howard, Donald S. (1943). WPA and Federal
Relief Policy. p. 34.
91. Jump up^ Sloman, John (2003). Economics. London:
Prentice Hall. p. 811. ISBN 0-273-65574-4.
92. Jump up^ Center on Budget and Policy
Priorities. "Introduction to Unemployment Insurance".
Retrieved 21 October 2010.
93. ^ Jump up to:a b "Tax Cuts for Job Creators". The New York
Times. 19 October 2012.
94. Jump up^ "Sturdy Beggars". Probertencyclopaedia.com.
Retrieved 22 July 2009.
95. Jump up^ "Poor Tudors". Localhistories.org. Retrieved 22
July 2009.
96. Jump up^ R. O. Bucholz, Newton Key, Early modern England,
14851714, p176
97. Jump up^ "History of the Death Penalty". Public Broadcasting
Service (PBS).
98. Jump up^ "Poverty in Elizabethan England". BBC History.
99. Jump up^ "Social Classes in Shakespeare's England[dead link]"
100.
Jump up^ "British social policy, 16011948", The
Robert Gordon University, Aberdeen.
101.
Jump up^ Engels, Fredrick (1892). The Condition of the
Working-Class in England in 1844. London: Swan
Sonnenschein & Co. pp. 45, 4853.Link is to excerpt
102.
Jump up^ Roe, Joseph Wickham (1916), English and
American Tool Builders, New Haven, Connecticut: Yale
University Press, LCCN 16011753. Reprinted by McGraw-Hill,
New York and London, 1926 (LCCN 27-24075); and by
Lindsay Publications, Inc., Bradley, Illinois, (ISBN 978-0917914-73-7).Report of the British Commissioners to the New
York Industrial Exhibition, London 1854
103.
Jump up^ Wells, David A. (1891). Recent Economic
Changes and Their Effect on Production and Distribution of
Wealth and Well-Being of Society. New York: D. Appleton and
Co.ISBN 0-543-72474-3.
104.
Jump up^ Beaudreau, Bernard C. (1996). Mass
Production, the Stock Market Crash and the Great Depression.
New York, Lincoln, Shanghi: Authors Choice Press.
105.
Jump up^ A reign of rural terror, a world away[dead link], U.S.
News, 22 June 2003
106.
Jump up^ About the Great Depression, University of
Illinois
107.
Jump up^ "Social conditions in Britain in the 1930s:
employment and unemployment". Blacksacademy.net.
Retrieved 27 July 2011.
108.
Jump up^ 19291939 The Great Depression, Source:
Bank of Canada
109.
Jump up^ Economic Recovery in the Great
Depression[dead link], Frank G. Steindl, Oklahoma State University
110.
Jump up^ Great Depression, The Concise
Encyclopedia of Economics
111.Jump up^ Nancy E. Rose, Put to Work: The WPA and Public
Employment in the Great Depression(2nd ed. 2009)
112.
^ Jump up to:a b Overproduction of Goods, Unequal
Distribution of Wealth, High Unemployment, and Massive
Poverty, From: President's Economic Council
113.
Jump up^ Finegan, Chance (11 September
2008). "National Park History: "The Spirit of the Civilian
Conservation Corps"". National Parks Traveler. Retrieved 27
July 2011.
114.
Jump up^ Rifkin, Jeremy (1995). The End of Work: The
Decline of the Global Labor Force and the Dawn of the PostMarket Era. Putnam Publishing Group. ISBN 0-87477-779-8.
115.
^ Jump up to:a b c "Unemployment, issue briefing".
Politics.co.uk. Retrieved 27 July 2011.
116.
Jump up^ Phelps, Edmund S.; Zoega, Gylfi (2002).
"The Incidence of Increased Unemployment in the Group of
Seven, 197094". In Bitros, George; Katsoulacos,
Yannis. Essays in Economic Theory, Growth and Labor
Markets. Cheltenham: Edward Elgar. pp. 177210.ISBN 184064-739-6.
117.
Jump up^ "CPA Poster Collection". Conservative Party
Archive Poster Collection. Retrieved 27 July 2011.[dead link]
118.
Jump up^ "Historical UK Inflation And Price
Conversion". Safalra's Website. 15 April 2010. Retrieved 27
July 2011.
119.
Jump up^ "Jobless Rate in Britain Drops to Six-Year
Low". The New York Times. 16 January 1997. Retrieved 27
July 2011.
120.
Jump up^ "Euro-zone unemployment climbs to 10
percent high. Deutsche Welle. 29 January 2010.
121.
Jump up^ "Eurozone unemployment hits double digits".
UPI.com. 8 January 2010.
122.
Jump up^ "Europe's New Lost Generation". Foreign
Policy. 13 July 2009.
123.
Jump up^ November 2009 Euro area unemployment
rate up to 10.0% EU27 up to 9.5% .Eurostat. 8 January 2010.
124.
Jump up^ "Global unemployment outlook gloomy,
warns ILO. The Guardian. 30 April 2012.
125.
Jump up^ "Germany's recession ends". BBC News. 23
May 2002. Retrieved 27 July 2011.
126.
Jump up^ "Jobless rise highest for 17 years". BBC
News. 15 October 2008. Retrieved 27 July 2011.
127.
Jump up^ "Unemployment passes two million". BBC
News. 18 March 2009. Retrieved 27 July 2011.
128.
Jump up^ "UK economy emerges from recession". BBC
News. 27 January 2010. Retrieved 27 July 2011.
129.
Jump up^ "UK youth unemployment at its highest in two
decades: 22.5%". MercoPress. 15 April 2012.
130.
Jump up^ "UK unemployment increases to 2.5 million".
BBC News. 21 April 2010. Retrieved 27 July 2011.
131.
Jump up^ Ball, James; Milmo, Dan; Ferguson, Ben (9
March 2012). "Half of UK's young black males are
unemployed". The Guardian (London).
132.
Jump
up^ http://www.ons.gov.uk/ons/publications/2014_2015rereference-tables.html?edition=tcm%3A77-226710
133.
Jump up^ http://www.ons.gov.uk/ons/datasets-andtables/index.html
134.
Jump up^ "Asia strips Africa's textile industry". Asia
Times. 26 April 2005.
135.
Jump up^ "China trade blamed for 2.4 million lost US
jobs-report". Reuters. 23 March 2010.
136.
Jump up^ "Factory jobs: 3 million lost since 2000".
USATODAY.com. 20 April 2007.
137.
Jump up^ "Unemployment hits highest since 1995". 16
September 2009.
138.
Jump up^ "Broader U-6 Unemployment Rate Increases
to 17.1% in April". The Wall Street Journal. 7 May 2010.
139.
Jump up^ Unemployment statistics. Eurostat. April
2012.
140.
Jump up^ "Global youth unemployment rate climbs".
Business.financialpost.com. 23 May 2012. Retrieved 1 March
2014.
Further reading[edit]
External links[edit]
Wikiquote has quotations
related to: Unemployment
Look up unemployment in
Wiktionary, the free
dictionary.
Library resources about
Unemployment
Res
ources in your library
Employment
Aspects of corporations
Aspects of jobs
Aspects of occupations
Aspects of organizations
Aspects of workplaces
Corporate titles
Organized labor
[show]
Economics
[show]
Macroeconomics
[show]
Aspects of capitalism
Categories:
Unemployment
Economic problems
Labor economics
Social justice
Navigation menu
Create account
Log in
Read
Edit
View history
Go
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikimedia Shop
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
Afrikaans
Article
Talk
Azrbaycanca
()
Bosanski
Catal
etina
Cymraeg
Dansk
Deutsch
Eesti
Espaol
Esperanto
Euskara
Franais
Galego
Hrvatski
Ido
Bahasa Indonesia
Interlingua
slenska
Italiano
Latina
Latvieu
Lietuvi
Magyar
Bahasa Melayu
Nederlands
Norsk bokml
Norsk nynorsk
Occitan
Ozbekcha
Polski
Portugus
Romn
Shqip
Sicilianu
Simple English
Slovenina
Slovenina
/ srpski
Srpskohrvatski /
Suomi
Svenska
Tagalog
Trke
Ting Vit
Walon
West-Vlams
Edit links
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Mobile view
Basically there are five types of unemployment: frictional unemployment, cyclical unemployment,
structural unemployment, real wage or classical unemployment, and seasonal unemployment. The
level of unemployment varies with economic conditions and other circumstances. The causes of
unemployment include increased population, rapid technological change, lack of education or skills
and rising cost lead to financial, social and psychological problems.
There are four main causes of unemployment. Firstly, the increased population which leads to higher
unemployment rates. As the number of people who are looking for jobs is increasing, it is more
difficult to arrange jobs for all these huge numbers of workers. In this situation the demand for work
will be more than the available occupations. This will result in increased number of unemployed
individuals. An unemployment situation continues as long as the demand-supply gap persists. This is
very obvious in countries like China and India.
There is a global rapid technological change which plays a big role in the increased unemployment
problem. Many jobs which were handled by hands are being done by different machines and
technology nowadays. The new advanced technology replaced the low skilled or unskilled workers in
different factories. This made production faster and more accurate, but it resulted in more
unemployed people. For example; when personal computers replaced typewriters, typewriter
become unemployed and had to find other industries to be employed in. Additionally, according to
the International Labour Office technological progress may have had a more substantial impact. The
new technological advances have eliminated the less complicated tasks; while at the same time
require workers to have higher levels of skills. However, it is doubtful whether technological change
is leading to a net destruction of employment, if both direct and indirect impacts are accounted for.
(Combating Unemployment and Exclusion: Issues and Policy Options, Contribution to the G7
Employment Conference submitted by the Director-General of the International Office, Lille, 1-2 April
1996. ISBN 92-2-110158-4. International Labour Office, Geneva, 1996.)
The third cause of unemployment is lack of education or skills for employment. This happens when
the qualifications of a person are not sufficient to meet his job responsibilities. If the education was
not directed towards the labour market then a mismatch occurs thus leading to structural
unemployment. These individuals face difficulties in learning new skills applicable for the required job
e.g. computer skills, management and communication. As the need for skilled and educated workers
increase for employers, the employment opportunities for those without a college education
decrease leading to higher unemployment rate. (Morgan Drake Eckstein , nd)
Unemployment can be due to the rising cost. The rising cost makes it hard for the companies to pay
the usual optimum salary for the employees or even the minimum wage in some cases. Hence, the
employees reject low wage jobs and leave the companies. Foe example if the price of petrol or
electricity has increased this definitely will affect the industries or factories which depend on these
energy sources. Moreover, sometimes companies need to cut down the budget due to an economic
crisis, industrial decline, company bankruptcy, or organizational restructuring, so the number of
employees is reduced or some positions are cancelled which increases the unemployment rates.
There are three major effects of unemployment. First, the financial problems which are rising from
prolonged unemployment. It is known that we can not buy anything without money; the constant
income buys food, clothing and shelter. Due to the loss of income, unemployed individuals will be
unable to earn money to meet financial obligations. For example, people who fail to pay mortgage
payments or to pay rent will loss their housing properties and become homeless. Unemployment
also prevents one from doing many things and involving in different activities e.g. travelling.
Consequently, this affects the national economy leads to poverty. As a result of the financial crisis
and the reduced overall purchasing capacity of a country the unemployed individuals are unable to
maintain the minimum standard of living. (paraphrasing>>>>>>>>>>)
There are many obvious and well-documented social problems which are caused by unemployment.
Because of the increased spare time and stress there will be an increase in the rates of alcoholism,
drug abuse and domestic violence. Moreover, high unemployment often results in increased
marriage breakdown, divisions and discrimination in society, suicide rates and crime rates especially
among the young (Garry Ottosen and Douglas Thompson, 1996).
arrests, and 0.8% more assaults reported to the police. Furthermore, it has shown that long period of
unemployment can also reduce the life expectancy of workers by about 7 years (Alain Anderson,
Economics. Fourth Edition 2006)
In conclusion, there are different causes of unemployment around the world. The top causes are
increased population, rapid technological change, lack of education or skills and rising cost. The
various effects of unemployment include financial, social and psychological problems.
Unemployment has become a major problem which affects our life, health, economy and community.
So countries should build more companies and factories in order to provide more opportunities and
positions to respond to the need of the increased population. Moreover, there should be
unemployment insurance to help unemployed individuals in their financial problems till they find a
job. It is important also to utilize the vocational education along with other skills courses' in order to
prompt the education and skills of the workers to meet the labour market need.