economy

Natural unemployment and its forms

Natural unemployment and its forms
Natural unemployment and its forms

Video: (Old Version) Macro 2.3- Unemployment and Natural Rate of Unemployment- AP Macro 2024, June

Video: (Old Version) Macro 2.3- Unemployment and Natural Rate of Unemployment- AP Macro 2024, June
Anonim

Unemployment is a socio-economic phenomenon in which part of the active and able-bodied population does not find work and therefore becomes "superfluous."

The causes of unemployment and manifestations are different, so it is customary to subdivide it into types.

In the world, it is customary to consider three main types of this problem: frictional and structural (natural unemployment) and cyclical unemployment.

Under the frictional understand the temporary unemployment of people due to voluntary transfer to another job, this is due to the search and expectation of a more suitable place. Most often, this situation occurs among people who select jobs that match their qualifications and personal preferences.

The magnitude of this type of unemployment depends on vacancies, as well as on the efficiency and speed with which people find the place of work that suits them.

Structural unemployment depends on technological shifts in production, changing the structure of demand for a certain force. Such unemployment is usually forced.

Cyclic is sometimes called under-demand unemployment. It is a consequence of a reduction in aggregate demand for labor.

The intermediate between frictional and cyclical is seasonal unemployment. It is influenced by natural factors, and it is easily predicted.

This type of unemployment is inherent in the tourism business, agriculture, some industries (fishing, picking berries, rafting, hunting), the construction industry. At the same time, intensive work continues for several months or weeks a year, and the rest of the time is “simple”.

Natural unemployment

Monetarist scientist from America M. Fridman frictional and structural types of unemployment combined into a single concept of "natural unemployment". In economics, full employment implies a situation that has been sustainable for a long time. It is also called normal unemployment.

Natural unemployment is a reflection of the equilibrium state in the labor market with absolute employment, in this case the number of people looking for work is equal to the number of vacancies. If the unemployment rate actually exceeds natural, the balance in the labor market is violated, cyclical unemployed appear who want to work, but who cannot find a place because of a decrease in demand for workers during periods of decline in production.

Natural unemployment in most developed countries is 4-6% and its level has been steadily growing in recent years due to the high social protection of citizens of these countries (increase in unemployment benefits, growth in minimum wages, easing requirements for those who receive benefits). This leads to a long search for a place, an increase in the exactingness of the proposed job.

The upward trend in the rate of natural unemployment is associated with an increase in the share of women and youth in the composition of workers, as well as frequent shifts in the structure of the economy.

The concept of regional unemployment is also known; it arises in certain regions due to the massive closure of enterprises.

Hidden unemployment is understood as a condition when people formally work, but in reality take up extra space. A significant amount of hidden unemployment is inherent in the modern economy of Russia and Bashkortostan. This is due to the large number of defense and large city-forming enterprises. In anticipation of federal orders, defense enterprises are not restructured or closed, employees of such enterprises do not quit, but are listed as on administrative leave, or appear at work several times a month. In the event that the enterprise belongs to city-forming, layoffs lead to an aggravation of the social situation in the region.