Unemployment in Economics

Unemployment in economics

Specific purpose: To introduce the rate of unemployment through economics perspective, and the difference between structural unemployment and frictional unemployment.

Central idea: The factor which influence whether we can find a job is not just depend on what kind of person we are, but also the unemployment in economics itself.

Main point:

1. Main three kinds of unemployment influence the rate of unemployment.

2. The concept of classical unemployment and its relationship with economics.

3. The concept of frictional unemployment and its relationship with economics.

4. The concept of structural unemployment and its relationship with economics.

Why would you like to go into the campus for a bachelor degree or a master degree? Because you want to get a way to find a good job and win a bright future. But do you know what factors influence the rate of employment, and how can we explain the phenomenon through economics.

The amount of unemployment in an economy is measured by the unemployment rate, the percentage of workers without jobs in the labour force.

Unemployment can be generally broken down into several types that are related to different causes. Classical unemployment occurs when wages are too high for employers to be willing to hire more workers. Wages may be too high because of minimum wage laws or union activity. Consistent with classical unemployment, frictional unemployment occurs when appropriate job vacancies exist for a worker, but the length of time needed to search for and find the job leads to a period of unemployment. Structural unemployment covers a variety of possible causes of unemployment including a mismatch between workers' skills and the skills required for open jobs. Large amounts of structural unemployment can occur when an economy is transitioning industries and workers find their previous set of skills are no longer in demand. Structural unemployment is similar to frictional unemployment since both...