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Topic: Cyclical unemployment


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In the News (Mon 17 Jun 19)

  
  Tutor2u - Unemployment - Causes of Unemployment
Cyclical unemployment is involuntary unemployment due to a lack of aggregate demand for goods and services.
Frictional unemployment is transitional unemployment due to people moving between jobs: For example, newly redundant workers or workers entering the labour market (such as university graduates) may take time to find appropriate jobs at wage rates they are prepared to accept.
Structural unemployment occurs when people are made unemployed because of capital-labour substitution (which reduces the demand for labour) or when there is a long run decline in demand in their particular industry.
www.tutor2u.net /economics/content/topics/unemp/unempcause.htm   (805 words)

  
 Unemployment types - Wikipedia, the free encyclopedia
Structural unemployment may also be encouraged to rise by persistent cyclical unemployment: if an economy suffers from long-lasting low aggregate demand, it means that many of the unemployed become disheartened, while finding their skills (including job-searching skills) become "rusty" and obsolete.
Hidden, or covered, unemployment is the unemployment of potential workers that is not reflected in official unemployment statistics, due to the way the statistics are collected.
To Marxists, this kind of unemployment cannot be abolished without overthrowing capitalism as an economic system and replacing it with democratic socialism — or else by running capitalism using a fascist state, under which profitability is protected by the systematic use of direct force.
en.wikipedia.org /wiki/Unemployment_types   (2043 words)

  
 Lecture 11. Oct. 2 - Ch. 7, part 2
Frictional unemployment is an outcome of normal labor turnover -- that is, the movement of people into and out of the labor force and the creation and destruction of jobs in a dynamic economy are both sources of frictional unemployment.
However, the duration of unemployment also tends to rise near the trough of a business cycle and decline during expansions (i.e., more of it is longer-term during the worst of a recession).
In addition to the three types of unemployment described by Parkin, economists also distinguish seasonal unemployment -- the unemployment that results from seasonal changes in the demand for labor (as occurs in agriculture or tourism) or in the supply of labor (as with students in the summertime).
econ.la.psu.edu /~dshapiro/l11oct02.htm   (1324 words)

  
 Explaining European Unemployment
Unemployment insurance is more generous than in the United States, both in terms of the replacement rate and of the length for which benefits are given.
In many (but not all) countries the increase in unemployment in the 1970s was associated with a small further increase in the generosity of unemployment insurance, a small increase in employment protection, and an increase in the tax wedge.
In most countries, the main proximate cause of the increase in unemployment in the 1970s and the early 1980s was indeed a series of adverse "labor supply shifts," that is a series of steady increases in wages given unemployment and the level of technology.
www.nber.org /reporter/summer04/blanchard.html   (2822 words)

  
 Introduction to Macroeconomics Chapter 19
Frictional and structural unemployment are two types of unemployment that always exist in an economy and thus prevent the unemployment rate from ever reaching zero.
Cyclical unemployment is generally considered the most important and the one on which our macroeconomic models are focused.
Because frictional and structural unemployment cannot be directly measured, the natural rate of unemployment is a theoretical concept that is often defined as the rate at which increases in aggregate demand for output leads mostly to higher prices and wages rather than output and employment.
mason.gmu.edu /~tlidderd/104/ch19Lect.html   (2723 words)

  
 Unemployment - WebArticles.com
Another cost for the unemployed is that the combination of unemployment, lack of financial resources, and social responsibilities may push unemployed workers to take jobs that do not fit their skills or allow them to use their talents.
Alternatively, this "law" says that as unemployment rises by one percentage point, say from 5% to 6% of the civilian labor force, the percentage of potential output that could have been produced but was not rises by about two points.
Voluntary unemployment is blamed on the individual unemployed workers (and their decisions), whereas involuntary unemployment exists because of the socio-economic environment (including the market structure and the level of aggregate demand) in which individuals operate.
www.webarticles.com /print.php?id=97   (3321 words)

  
 SparkNotes: Measuring the Economy 2: Unemployment
When a member of a family is unemployed, the family feels it in lost income and a reduced standard of living.
This type of unemployment is called cyclical unemployment because it is attributable to changes in output due to the cycles of the economy.
The unemployment rate is the ratio of the unemployed to the total labor force or (5 / 25) = 20%.
www.sparknotes.com /economics/macro/measuring2/section2.rhtml   (1825 words)

  
 The Idea of "Unemployment": Cyclical, Frictional, and Structural   (Site not responding. Last check: 2007-11-05)
A person is said to be "unemployed" if he or she is looking for work, is willing to work at the prevailing wage, but is unable to find a job.
Other reasons for lower natural unemployment rate today are: baby-boomers reached the age of maximum employment; new welfare laws put tighter work requirements on transfer recipients; and the increased prison population absorbed individuals who would otherwise have higher probability of unemployment.
If the unemployment rate stays the same relative to the previous year, real GDP in a year grows by around 2.5% per year; this is the normal long-run growth rate of the economy (or natural rate of growth) due to population growth, capital accumulation and technological progress.
www.eco.utexas.edu /graduate/Konstantinova/a6_Unemp.htm   (1797 words)

  
 Handout 3   (Site not responding. Last check: 2007-11-05)
Cyclical unemployment is not a desirable type of unemployment.
Remember however that the unemployment rate along with other indicators is often used to judge the performance of the economy.
In this case we would have the unemployment rate falling, giving the impression that the economy is improving when in fact it is not.
home.maine.rr.com /ec/202/Macrosat/L3/l3.htm   (1119 words)

  
 Cyclical Unemployment   (Site not responding. Last check: 2007-11-05)
Figure 6 shows unemployment in the period after World War II into the 1990's, based on data from the Economic Report of the President.
The decline in the demand for labor leads (perhaps temporarily) to an increase in unemployment, as measured by the standard statistics.
In the excess-supply interpretation, cyclical unemployment in particular is thought of as excess supply of labor.
william-king.www.drexel.edu /top/prin/txt/probs/cycunN.html   (223 words)

  
 Unemployment in the Industrial Countries
Economists estimate that the rate of output foregone because of unemployment is, on average, equal to the unemployment rate.
Cyclical unemployment results from a temporary fall in economic activity, while structural unemployment is caused by shifts in final demand and technological change that create a mismatch between available and demanded skills.
For a person to be counted as unemployed, three conditions must be satisfied: (1) the worker is not working, (2) is actively seeking work and (3) is available for work.
www.sba.oakland.edu /econpage/newsletters/IEL38TX2.HTM   (1858 words)

  
 The Short Run
Structural unemployment - unemployment resulting when the skills do not match those required for jobs.
unemployed workers are those workers who are part of the labor force but are not actively seeking work.
Okun's Law - for every 1 percent that the actual unemployment rate exceeds the natural rate, a 2.5% percent GDP gap occurs.
www.theshortrun.com /classroom/glossary/macro/unemployment.html   (217 words)

  
 Unemployment - Wikipedia, the free encyclopedia
Also, a small amount of frictional unemployment allows employers to find the employees most suited to the jobs offered, while allowing workers to find the jobs that better fit their tastes, talents, and needs.
Unemployment may thus promote labor productivity and profitability.
Note: from March 1, 2005 unemployment statistics were be derived from three sources, the Current Population Survey, a statewide survey of businesses known as the Current Employment Statistics Survey, and state unemployment insurance claims.
en.wikipedia.org /wiki/Unemployment   (4751 words)

  
 Online Learning Center
Frictional unemployment is due to workers searching for new jobs or waiting to take new jobs; this type of unemployment is generally desirable.
Structural unemployment is due to the changes in technology and in the types of goods and services consumers wish to buy; these changes affect the total demand for labor in particular industries or regions.
Because some frictional and structural unemployment is unavoidable the full-employment unemployment rate (the natural rate of unemployment) is the sum of frictional and structural unemployment is achieved when cyclical unemployment is zero (the real output of the economy is equal to its potential output) and is about 5.5% of the labor force.
www.mhhe.com /economics/mcconnell/student/olc/outline08.htm   (1054 words)

  
 To Grow out of Unemployment
A second, more philosophical issue, is that, as opposed to frictional unemployment, which is a welcome sign, structural unemployment is not and must be fiercely fought by the state.
By certain measures and theoretic formulas, the structural unemployment in Macedonia should be circa 9%, the frictional unemployment (the business cycle is turning up strongly so cyclical unemployment is bound to go down) contributing another 5%.
But this rate of unemployment can be achieved only with the right policy decisions on the state level – and the right management cadre to take advantage of these decisions and of the thrilling new vistas of the global market scene.
samvak.tripod.com /nm042.html   (1806 words)

  
 Types of Unemployment - Which Type is Typical? [Virtual Economy]
Demand-deficient unemployment occurs when there is not enough demand to employ all those who want to work.
If you look at the past behaviour of unemployment in the explanation section, you can clearly see its cyclical nature.
Most other seasonal unemployment is less severe than this, and tends to occur in certain industries.
bized.co.uk /virtual/economy/policy/outcomes/unemployment/unempth2.htm   (623 words)

  
 [No title]
They reason that if unemployment is thought of as a measure of "misery," then the knowledge of the duration of unemployment is equally as important as the level.
For example, if the unemployment rate is 7 percent but few people are ever unemployed for more than a week, that is much less of a problem than a 5 percent rate if most of those unemployed have been so for more than a year.
Accordingly, it is suggested that the unemployment rates experienced by different groups (whites, fls, males, females, etc.,) during the mid 50's would be applied to the number of people in these groups now to determine the appropriate value for "full employment" currently.
www.faculty.fairfield.edu /lane/Ec12/CH05B_Unemployment.doc   (3760 words)

  
 Unemployment: Determinants - Question Bank
cyclical unemployment is not included in the natural rate of unemployment
the duration of cyclical unemployment is affected by the level of aggregate demand
ratio of the frictional unemployment rate to the cyclical unemployment rate.
www.bized.co.uk /learn/economics/qbank/unemployment2.htm   (193 words)

  
 macroeconomics   (Site not responding. Last check: 2007-11-05)
The unemployment rate is the percentage of the labor force that is unemployed.
Does not account for the "hidden unemployment." "Hidden" unemployment includes those who are working part-time but wish to have a full-time job, and those who are grossly overqualified for their positions, the underemployed.
The costs of unemployment are the goods and services that might have been produced and consumed that are lost forever.
www.humboldt.edu /~ee3/econ104/topics/unemployment/index.html   (389 words)

  
 unemployment Definition
Unemployment is expressed as a percentage of the total available work force.
The level of unemployment varies with economic conditions and other circumstances.
unemployment rate, civilian unemployment rate, underemployment, cyclical unemployment
www.investorwords.com /5838/unemployment.html   (162 words)

  
 AS Economics: Unemployment and the Labour Market
In a population of 50 million, 26m are employed and 2m unemployed.
Unemployment is high but many vacancies are unfilled.
A government wishing to reduce the level of unemployment through the use of fiscal policy would be most likely to
www.tutor2u.net /quiz/economics/jbc_econ_unemployment_1.htm   (769 words)

  
 Unemployment - Question Bank
the overall effect of the minimum wage is an increase in the unemployment level
The natural rate of unemployment is generally thought to be the sum of
Unemployment benefits may increase the unemployment rate because unemployment benefits
www.bized.co.uk /learn/economics/qbank/unemployment1.htm   (293 words)

  
 [No title]
Since the unemployment rate is 8% when Y = Y*, we know that the NAIRU is 8%.
Question 5 a) The unemployment that exists at E0 is only frictional and structural.
Since the unemployment rate is 6% when Y = Y*, we know that the NAIRU is 6%.
web.uvic.ca /~jyhyawch/Econ104s003/Chapter31.doc   (660 words)

  
 [No title]
Cyclical unemployment is the component of unemployment that accompanies fluctuations in real GDP.
Frictional unemployment is the unemployment associated with the normal workings of the economy.
¡€..ÿÿþNÿÿþJÿÿþ5ó Ÿ¨Unemployment StatisticsŸ¨iThe natural rate of unemployment is the level of unemployment at which there is no cyclical unemployment.¡*jZÿÿþJó Ÿ¨Unemployment StatisticsŸ¨ÌFull employment is the level of employment that occurs when the unemployment rate is at the natural rate.
www.csus.edu /indiv/p/perezs/econ1a/Lecture_notes/ch06.ppt   (719 words)

  
 McConnell and Brue Economics Self Tests for Chapter 08
The unemployment rate in an economy is 8%.
The total population of the economy is 250 million, and the size of the civilian labor force is 150 million.
it covers frictional unemployment, but not cyclical unemployment, which inflates unemployment figures.
www.mhhe.com /economics/mcconnell/student/olc/mctest08.htm   (758 words)

  
 [No title]
the relationship between stocks of unemployment and vacancies known as the Beveridge curve, in the Czech Republic during 1995—2004.
While the Beveridge curve is described by labour market stocks, we explain shifts of the Beveridge curve using gross labour market flows by estimating the matching function.
We interpret parameter changes of the matching function during the business cycle, distinguishing cyclical and structural changes of the unemployment rate.
www.eea-esem.com /EEA-ESEM/2006/prog/viewpaper.asp?pid=802   (129 words)

  
 Cyclical Unemployment: Sectoral Shifts or Aggregate Disturbances?
"Cyclical Unemployment: Sectoral Shifts or Aggregate Disturbances?" Journal of Political Economy, Vol.
"Unemployment and Insurance," NBER Working Papers 1095, National Bureau of Economic Research, Inc.
"Unanticipated Money Growth and Unemployment in the United States," Working Papers 234, Queen's University, Department of Economics.
ideas.repec.org /p/nbr/nberwo/1410.html   (349 words)

  
 EMIRE: DENMARK - CYCLICAL UNEMPLOYMENT
You are here: home > Areas of expertise > Industrial relations > EMIRE > DENMARK > Letter K > CYCLICAL UNEMPLOYMENT
Unemployment which is due to the fact that, under the influence of fluctuations in the business cycle, demand is insufficient to provide employment for everyone.
Please note: the European industrial relations glossaries are not systematically updated, and some of the material may not reflect the current situation.
www.eurofound.eu.int /emire/DENMARK/CYCLICALUNEMPLOYMENT-DN.html   (68 words)

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