Unemployment is a socio-economic phenomenon in which part of the active working-age population is not employed in the production of goods and services. This is a macroeconomic problem that has the most direct impact on everyone, since the loss of a job in most cases means a decrease in living standards.
Instructions
Step 1
There are several types of unemployment - frictional, structural, institutional, seasonal, cyclical and others. Unlike the natural type of unemployment, which includes the first two types, cyclical unemployment arises not as a result of a lack of jobs, but when economic growth slows down, a decline in GDP, and an industrial crisis. For example, during the Great Depression in the United States, every fourth resident of the country became unemployed.
Step 2
Cyclical unemployment affects all sectors of the economy. Mass bankruptcies of small and even large companies cause unexpected and sudden layoffs and layoffs. In addition, in the conditions of an economic downturn, retraining or advanced training does not help people, and a change of place of residence does not save people, since the crisis often covers the entire national economy or even reaches the world level.
Step 3
Cyclical unemployment caused by the economic crisis can manifest itself in both overt and covert forms. Open is expressed in dismissal and complete loss of work, hidden is manifested in a reduction in the working week or working day, forced vacations, and a decrease in wages.
Step 4
Cyclical unemployment is the most massive and painful, apart from social disasters, it brings losses in the volume of real GDP. American economist Arthur Oaken, comparing GDP in terms of actual and full employment, concluded that an excess of cyclical unemployment over natural by even 1 percent leads to a decrease in the actual level of GDP by 2.5 percent, in comparison with the potential level of gross product.
Step 5
In the conditions of cyclical unemployment, the state is responsible for budget spending to smooth out the consequences - the payment of benefits, the opening of employment centers, the rehabilitation of the unemployed, the creation of new jobs at the expense of the state, the reorientation of tax policy, etc.
Step 6
Since the development of the economy is cyclical and involves an alternation of recessions and ups, cyclical unemployment significantly decreases with the next recovery and can completely disappear.
