by Edwin Mwai|2012
According to the International Labor Organization (ILO), unemployment refers to a situation where persons have no jobs and that they have been looking for work in last four weeks with little or no success. Alternatively, unemployment can be defined as an economic phenomenon in which an individual(s) looking for gainful employment have tried with no success to get economically empowered through employment either formal or informal.
The levels of unemployment will depend on a plethora of economic conditions and other market forces and will differ from country to country. According to the U.S. Bureau of Labor Statistics, the unemployment level in the U.S currently stands at 8.5 Percent which is an improvement from the past months. All in all, there are five basic forms of unemployment.
Frictional Unemployment
Frictional employment refers to the time period in between jobs when an individual is looking for or making the transition from one job to another. It is sometimes referred to as search unemployment. This situation may be voluntary depending on the circumstances of the unemployed person. In the developed countries, the chances of landing a job are high thus lowering the chances of frictional employment.
Structural Unemployment
Structural Unemployment refers to a form of unemployment that is occasioned by a mismatch between the demand in the job market, location and skills of job seekers. It is usually as a result of some structural changes in the country’s economy. Some of the factors that may result in structural unemployment include occupational immobility, technological change as well as geographical immobility. Occupational immobility is a situation where it is difficult for one to learn a new skill whereas geographical immobility is a situation where the job seeker finds it increasingly difficult to relocate to a new work location. This kind of employment is dependent on the industry structure as well as the growth rate of the country’s economy.
Classical Unemployment
Classical Unemployment refers to a form of unemployment occasioned by labor and trade unions bargaining for higher wages leading to go slows, strikes and eventual lockouts. This usually results in a demand for labor. This form of unemployment is also known as disequilibrium unemployment or real wage unemployment.
Cyclical Unemployment
Cyclical unemployment refers to unemployment that is as a result of economic recession. When the economy is in a downturn, the sum total demand for goods and services declines and there is a corresponding decline in the demand for labor. During times of recession, the unskilled and surplus workers fall into the class of the unemployed.
Seasonal Unemployment
This is a form of unemployment that is as a result of the seasonal nature of the job. This is heavily reliant on the job industry. Some of the industries that lead to seasonal unemployment include the hospitality and tourism industry as well as the catering and fruit picking industries among others.
There are various factors that are responsible for unemployment. To find out more on the factors that lead to unemployment watch out for our next post.
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