Question

Unemployment: limitations of how it is officially measured, describing the current unemployment problem - including types, causes (layoffs, etc.), duration, industries/sectors, regions, etc.

Answer 1

Unemployment is a situation happening in the society where people who are willing to do a job and who are searching a job are not getting jobs. Unemployment rate is the measurement of present unemployment. It will be great at the time of recession. The four major methods of measuring unemployment rate are labour force sample surveys, official estimates, social insurance statistics, employment office statistics.

The major limitation while measuring unemployment rate is the method using are not correct sometimes because these methods will not take into consideration, the people who are disable to work temporarily, people who are in jail, voluntary retired people etc.

The main causes of unemployment are rise in population, inadequate technological variations, non education and increase in cost due to various factors such as social, financial as well as psychological.

Types of unemployment includes cyclical, frictional as well as structural. Cyclical unemployment happens during the inflation and recession period in the society. Frictional unemployment happens because the normal sales in the labor market and the period for finding out the new jobs for the workers. Structural one occurs in the absence of a particular kind of worker demand.

As the duration of the unemployment period increases, the human capital lose increases very much. In some specific regions, unemployment will be very high and such regions will be called as high unemployment regions. Here, unemployment will appear high also in between people who were having jobs in less unemployment industries.