Unemployment And Its Types - Assignment Solution

Unemployment

The term unemployment has multiple definitions, unemployment refers to an individual who is enthusiastic and is looking for employment (Galobardes & Shaw, 2006). Mitchell & Muysken (2004) describes it as the incapability of an individual who is eager and can work to attain employment. Roughly around 900 million people from several developing nations earn as low as 2 dollars a day per person that is below the poverty line. Moreover, around 200 million people that are unemployed around the world include the majority of our youth (UN, 2012).

The rate of unemployment differs from nation to nation, with developing nations having the highest rates. According to ILO (Employment Trends Report, 2011), the Middle East has a majority of the unemployed people in the world. Iraq with 10.8% at the top and on the second number in Saudi Arabia with 5.8%.

3.2.1.1 Types of unemployment

1. Frictional unemployment is also known as short term employment, it occurs mostly throughout job changing or job-seeking among new candidates (Thirlwall, 2007). Many advise that frictional unemployment is valuable for workers and managers, along with the whole labour force. This is because this type of unemployment participates in refining the hiring process (Hayes, 2006). 
2. Seasonal unemployment occurs when people are unemployment during a particular time in a year (Alam, Siwar, Molla & Talib, 2010). This happens in with the industries that depend on seasonal events like Christmas.
3. Structural unemployment is a type of unemployment that occurs due to disparity between employments and employees (Thirlwall, 2007). This occurs due to a change in technology (Michaillat, 2012). 
4. Cyclical unemployment occurs at a particular time in a business cycle. This is characterized by stages of development shadowed by slumps. A deficit in aggregate demand is the key source of this kind of unemployment (ILO, 2011).

3.3 Labour market structure

3.3.1 Labour market macroeconomic

Macroeconomic models are typically aiming towards aggregate supply and aggregate demand (Hein & Stockhammer, 2011). These types of models become significant throughout a recession or economic sluggishness. Supply-side model emphasis the economically dynamic populace, and intend to reduce the structural unemployment rate (Traxler, 1995; Wood, 1994), whereas demand-side models include managers, and aim to lessen demand deficient unemployment (Burtless, 2002).