100% Original, Plagiarism Free, Tailored to your instructions

Order Now!


Unemployment rate refers to the percentage of people within the available labour force who do have jobs and are actively looking for one (Boyes & Melvin, 2005). Unemployment rates cannot be reduced to zero, which means every economy has some level of unemployment. However, these unemployment rates are of different natures and each has different causes. In addition various measures have been suggested as remedies for reducing unemployment. However, without determining the type of unemployment and its causes it is difficult to determine suitable solutions that will reduce the situation. The types of unemployment and their causes are explained below (Hughes & Perlman, 1984)
Types of unemployment and their causes
            First, frictional unemployment is a temporary lack of a job, as a result of normal turnover within the labour market. These include: People who have been fired or quit their jobs voluntarily, yet thy have marketable skills and are looking for new employment. Young graduates who are searching for their first employment. Short unemployment periods between projects, such as in construction industries, whereby workers are laid off on temporary basis. Some unemployment periods are also seasonal, such as at the end of harvesting season, where more farm workers are jobless as they wait for the next farming season. This type of unemployment is caused by the transition time taken by an employee before getting to a new job. It also results from lack of information, whereby a job seeker cannot be immediately matched with a job vacancy. It can be reduced by using improved methods of sharing job information, by listing vacancies on the internet (Tucker, 2008).
Secondly, structural unemployment, whereby jobs trained for are not there, either for a long-term situation or permanently. It is a situation where the skills of the unemployed do not match the requirements for the jobs available. This can happen in three situations: first lack of education or skills to available jobs. For instance when graduates come out of college with skills and find that what they learnt is no longer marketable. Secondly, shift in demand due to changes in consumer tastes and preferences lead to unemployment of some workers. Those who were producing products whose demand has gone down will be laid off by their companies. Thirdly, introduction of the latest technology may render some workers jobless. This is because some of the jobs performed by them are now done by computers. Structural unemployment can be reduced by retraining for new jobs (Tucker, 2008).
The last type of unemployment is cyclical unemployment; where business cycle is the cause for lack of jobs and it happens during recession. Recession is characterized by a fall in real GDP, as a result companies are forced to close down and workers are laid off. A fall in GDP is caused by reduction in consumer spending, investment as well as reduction in government spending. However, when real GDP goes up unemployment rate also increases. Therefore, to prevent such sharp swings in the rates of unemployment, the government should put up macro economic policies that moderate this type of unemployment (Baumol & Blinder, 2009).
Keynesian or classical assumptions in relation to the types of unemployment
First, Keynesian theory can be used to explain frictional and cyclical unemployment. The theory explains that business cycles are a as a result of imbalances between productive capacity of an economy and its aggregate demand. Whereby, aggregate demand refers to the income available to businesses, the government and the consumer, to use in purchasing goods and services. Productive capacity refers to overall value of services and goods that can be produced by an economy working at its full capacity. Gross Domestic Product refers to goods that have actually been produced. Therefore when productive capacity is more than demand, the producers will reduce their output. This leads them to lay off some workers for a while resulting in frictional unemployment (Janda, Berry & Goldman, 2008)
On the other hand classical theory explains that, when demand for goods and services surpasses productive capacity, people will be willing to pay for more to get goods and services. This will drive the prices up resulting in inflation. The consumer’s purchasing power will go down as result. Workers will in turn demand for higher wages which drives cost of production up. In the end some workers will be laid off to reduce costs. This explains cyclical unemployment. Particularly because, when the inflation is corrected normal situation resumes but the cycle can happen again. In order to reduce unemployment levels, the classical theory, roots for the reduction of wages which will in turn reduce the costs of production. As a result producers will produce cheaper goods and services. However, the Keynesian theorists say that, government monetary and fiscal policies should be used. These will reduce inflation and increase producers’ ability to produce cheaper goods (Blaug, 1997)
It is clear that there are different types of unemployment situations and each has its own causes and solutions. Theorists have also tried to explain the various unemployment situations; however, they differ in the causes and solutions for the situations. Therefore, any government is supposed to study the unemployment situation in its economy and derive appropriate measures that will help to minimize the effects of the situation. In addition, the unemployed individuals should also be able to determine their unemployment situations; hence they will be able to apply appropriate remedies.

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!