In: Economics
Here are four individuals telling you their stories of how they
became unemployed. In a multi-paragraph essay, apply the theories
of unemployment to explain the type of unemployment that each of
these individuals is facing and explain which of these individuals
qualifies for unemployment benefits:
Two months ago, Marcelle used to work full time in an automobile
manufacturing firm. "The factory where I used to work has closed
because our market contracted so much, and so I was laid off. This
is happening to people all over the country-all you see in the
papers is that economic growth has fallen and incomes across the
country have fallen. I have been looking very hard for a new job,
but have had no luck yet."
Until last week, Dominic used to work full time as a hair-dresser
in downtown Cincinnati. "I decided to quit my job, because I want
to move to New York City."
Until last month, Francine worked part time at a ski resort. "Well,
it is summer now, and so the resort is closed. I will apply again
in the winter when the snow is back. I am not interested in working
until then."
Two months ago, Beauvoir had been working full time as a secretary.
"I was a good typist, but I don't know how to use a computer. My
boss wanted to upgrade the office to computers, and so I was
replaced by someone who is computer-savvy. I have been looking for
another job, but it appears that I need to learn some computer
skills."
Develop a response that includes examples and evidence to support
your ideas, and which clearly communicates the required message to
your audience. Organize your response in a clear and logical manner
as appropriate for the genre of writing. Use well-structured
sentences, audience-appropriate language, and correct conventions
of standard American English.
A person is considered unemployment when he is actively seeking for employment but is not getting any jobs. We have four different scenarios which are examples of various types of unemployment . Recognition of the various types of unemployment helps policy makers to make better econinic policies to help individuals and keep the economy well functioning .
Unemployment benefits are provided to those individuals who have lost their jobs with no fault of their own and are actively seeking for employment. Either due to economic slowdown,change in technology etc. Individuals who quit their jobs for "good cause" are eligible for unemployment benefits although definition of good cause varies in states . People who are fired for misconduct are not eligible for unemployment benefits. Eligible person gets uneployement benefit until they get a new job or for a definite period whichever comes first.
Various types of unemployment along with the examples given above are:
1 Cyclical unemployment-
An economy goes through various cycles of recession and rebounds which effects profits of producers and due to lack of demands various companies decides to lay off their employees to keep their company floating. In the current scenario of global coronavirus pandemic we are witnessing huge job losses in all sectors of economy due to Government restrictions on movements as well as sudden drop in demands of goods which makes it impossible for employers to keep their workers .
The first scenario where in Marcelle lost job due to economic slowdown is part of cyclical uneployement and is also eligible for unemployment benefits because he lost job with no fault of his own and is also able as well as actively seeking for work.
2 Frictional unemployment
Frictional unemployment is caused when a person is temporarily unemployed. A person who leaves one job because he quit or got fired and now is in search for another better job without any recession in the economy is part of frictional unemployment .
In the above case Dominic is part of fricitional unemployment and is eligible for unemployment benefits as he was working full time and is able and seeking to work at a better place.
3 Seasonal Unemployment
Some industries are able to provide jobs only during certain times of the year and then not provide for work for the remaining times. It is called seasonal Unemployment because jobs are available only during fixed seasons. In agricultural sector it is not possible to grow cereals or vegetables all year round and there are certain seasons where in production is not possible due to extreme cold or hot climate or other weather conditions.
In the above case Francine is part of cyclical unemployement due to change in season and will not be eligible for unemployement benefits as he is not seeking for work till next season.
4 Structural Unemploymentt
Structural unemployment occurs when individual lack skills to work in the jobs available or due to technological advances a person is laid off from work. In this case a person needs to gain skills to be able to get new jobs .
Beavoir lost job because of technological advancement for you writer to computers which comes under the chategorof structural unemployement. He is eligible for unemployement benefits until he gets new job .