Question

explain unemployment

Answer 1

Hey mate, here is your answer.: -)

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage...

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Answer 2

For payments paid to unemployed people,
see unemployment benefits.
"Rate of unemployment" redirects here. For
rates in specific countries, see List of
countries by unemployment rate.
Unemployed men outside a soup kitchen in
Depression -era Chicago , Illinois , the US ,
1931
Unemployment is the situation of actively
looking for employment but not being currently
employed.
The unemployment rate is a measure of the
prevalence of unemployment and it is
calculated as a percentage by dividing the
number of unemployed individuals by all
individuals currently in the labor force . During
periods of recession , an economy usually
experiences a relatively high unemployment
rate. [1] According to International Labour
Organization report, more than 200 million
people globally or 6% of the world's workforce
were without a job in 2012. [2]
The causes of unemployment are heavily
debated. [3] Classical economics, new
classical economics , and the Austrian School
of economics argued that market mechanisms
are reliable means of resolving unemployment.
These theories argue against interventions
imposed on the labor market from the outside,
such as unionization, bureaucratic work rules,
minimum wage laws , taxes, and other
regulations that they claim discourage the
hiring of workers. Keynesian economics
emphasizes the cyclical nature of
unemployment and recommends government
interventions in the economy that it claims will
reduce unemployment during recessions. This
theory focuses on recurrent shocks that
suddenly reduce aggregate demand for goods
and services and thus reduce demand for
workers. Keynesian models recommend
government interventions designed to increase
demand for workers; these can include
financial stimuli, publicly funded job creation,
and expansionist monetary policies. Its
namesake economist John Maynard Keynes,
believed that the root cause of unemployment
is the desire of investors to receive more
money rather than produce more products,
which is not possible without public bodies
producing new money. [4] A third group of
theories emphasize the need for a stable
supply of capital and investment to maintain full
employment . [5] On this view, government
should guarantee full employment through
fiscal policy, monetary policy and trade policy
as stated, for example, in the US Employment
Act of 1946, by counteracting private sector or
trade investment volatility, and reducing
inequality. [6]
In addition to these comprehensive theories of
unemployment, there are a few categorizations
of unemployment that are used to more
precisely model the effects of unemployment
within the economic system. The main types of
unemployment include structural
unemployment which focuses on structural
problems in the economy and inefficiencies
inherent in labour markets, including a
mismatch between the supply and demand of
laborers with necessary skill sets. Structural
arguments emphasize causes and solutions
related to disruptive technologies and
globalization....Discussions of frictional
unemployment focus on voluntary decisions to
work based on each individuals' valuation of
their own work and how that compares to
current wage rates plus the time and effort
required to find a job. Causes and solutions
for frictional unemployment often address job
entry threshold and wage rates. [[Behavioral
economics|Behavioral economists]
Definitions, types, and
theories
The state of being without any work for an
educated person, for earning one's livelihood
is meant by unemployment. Economists
distinguish between various overlapping types
of and theories of unemployment , including
cyclical or Keynesian unemployment, frictional
unemployment, structural unemployment and
classical unemployment . Some additional types
of unemployment that are occasionally
mentioned are seasonal unemployment,
hardcore unemployment, and hidden
unemployment.
Though there have been several definitions of
"voluntary" and "involuntary unemployment" in
the economics literature, a simple distinction is
often applied. Voluntary unemployment is
attributed to the individual's decisions, whereas
involuntary unemployment exists because of
the socio-economic environment (including the
market structure, government intervention, and
the level of aggregate demand) in which
individuals operate. In these terms, much or
most of frictional unemployment is voluntary,
since it reflects individual search behavior.
Voluntary unemployment includes workers who
reject low wage jobs whereas involuntary
unemployment includes workers fired due to
an economic crisis, industrial decline ,
company bankruptcy, or organizational
restructuring.
On the other hand, cyclical unemployment,
structural unemployment, and classical
unemployment are largely involuntary in nature.