Question

Written Discussion Not everyone chooses to be employed. As the textbook shows, there are a multitude of reasons why people choose (or do not choose) to be unemployed.

Pick one type of worker (or a person you know) who chooses to be unemployed or under-employed and discuss why.

Alternately, you could pick a worker-type who traditionally is not employed and explain why they might choose to work.

Remember to talk about economic theory about unemployment rates (what is U-6?) , supply and demand and what the impact is of those individual employment choices..

Answer 1

All the country suffers from.unemployment.there is no country in the world with full employment as we assume in economic theory.all the country have to bear a minimal level of unemployment and economy can't do anything about this.but if the unemployment level.is higher than the minimal level.of unemployment then government has to take some actions to reduce the unemployment level.there can be two types of unemployment- voluntary unemployment and involuntary unemployment.let talk about voluntary unemployment first.

Volutary unemployment means for a man there is work available but he dosen't want to work by it's own.this is called voluntary unemployment as he keeps unemployed by his own choice not by the market forces.there may be certain reasons for not doing jobs.the first thing is happen that the wage rate is very low and at that lower wage rate many workers dosen't want to work.another things happen that he may be over qualified for any jobs they he/she may skip the job.but there are technical job available but one dosen't have such technical knowledge can't do the work although the work is available in market.now the common type case we cam see in recent times that students having very good qualification and higher degrees are being unemployed.as after such qualofications they are getting jobs like sweeper,peon etc which they can't do with those qualifications.the main problem here is the education system and the job market.the education system doesn't provided job oriented degrees rather giving students backdated bookish knowledge.which are not compatible in today's job market.so they are not getting jobs according to their skills.and those job are available are upto their class so they have to skip it.

On the other hand there may be worker who are involuntarily unemployed but earger finding jobs.this can happen in agricultural sector or in lower sector of urban areas like coolie, cart drivers etc.those people belongs to the lower society of country and most of them dosen't has traditional education.and moreover they are people who earns daily and consume daily.if one day he dosen't get any work that day he might be without food for him and his families also.and the problem is here to do those kind of jobs people don't need any extra qualifications.so the level and marginal levelnof workers are came this sectors in search of work.so this sector is over populated by workers then it is obvious that all the workers will not getting work although they want to.work.this is called involuntary unemployment.

So from this we can say that in the higher level where technological knowledge is required are suffer from voluntary unemployment.and as there are not much people available with the required technological knowledge then it has to pay higher wage rate as there is higher demand but lower supply of workers. And as there are excess demand then workers may be voluntarily unemployed for a short perriod of time to find a better job with higher wage rate.

on the other side in lower sector where no such knowledge is required wage rate is substancially low as there are much worker than needed.that means there are excess supply of workers.and as excess supply occurs wage rate is very low as anyone can't work at lower rate then there are others who can do it at that rate.so there is no chance of increasing wage rate.