Unemployment 2
Storyboard Text
- I'm voluntarily unemployed, this means I'm unemployed out of my own free choice and will, as I'm still able to work. A lot of people I know are also unemployed, but in different ways:Structural unemployment: When there is a mismatch between jobs and skills causing entire industries to collapseSeasonal unemployment: Caused by rises and falls in demand for labour during different seasons and times of the yearCyclical unemployment: Caused by rises and falls in demand for labour during different stages of the economic trade cycleFrictional unemployment: Temporary unemployment caused by people changing their jobsReal wage inflexbility unemployment: Unemployment caused by wages being set higher than the equilibrium wage either by minimum wages or trade unions causing firms to lay workers off
- Unemployment has a series of effects on all economic agents:Firms have lower output thus revenue and profits, lower confidence to invest, and the labour force experiences falls in employability as loss of skills during unemployment.Consumers endure less choice and possibly fall in quality, but they may get cheaper prices due to salesWorkers endure shame, stigma, and embrassment, and many negative effects like depression and suicide. They experience a loss of skills, and have loss of income. Exisiting workers have job insecurity and all endure a lower standard of living.Governments receive lower tax revenue, have lower investment into public services, lower export competitiveness, and damaged economic growth. Finally, society itself experiences rises in crime and riots, also there are more relationship problems and abandoned neighbourhoods, rising homelessness, and falls in service quality and rise in antisocial behaviour.
- rawr bark woof, here are some possible solutions to unemployment. Firstly, reflationary fiscal policy and looser monetary policy can be implemented to stimulate aggregate demand in the economy, and as demand rises, demand for labour, a type of derived demand also rises accordingly lowering unemployment; consumption will also further increase due to lower interest rates. Furthermore, as firms are more confident and investment rises, both due to more profits and lower interest rates, expansion will lead to growth and thus higher demand for labour. Additionally, supply side policies such as infrastructure building requires labour which creates jobs, but new areas need labour to be worked. Other supply-side policies such as expenditure on education and retraining helps increase the skills, mobility, and employability of workers.
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