Unemployment

Unemployment

There are hundreds of thousands of people in the world that are unemployed. This is a growing concern that our leaders are trying to understand and solve. There are five types of unemployment: Frictional unemployment, structural unemployment, classical unemployment, cyclical unemployment, and lastly seasonal unemployment. All of these types of unemployment impact the economy one way or another and it is a challenge that our government and its people face. This paper will describe the different types of unemployment and explain solutions that can lower the unemployment rate of the United States.

Unemployment, is when a person who is unsuccessful in finding a job to financially supports oneself. Investopidea explains it in more detail saying that, “Unemployment occurs when a person who is actively searching for employment is unable to find work. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force” (“Unemployment”). This has always been an international macroeconomic issue as government’s struggles to find a solution. According to the Bureau of Labor Statistics, the rates of unemployed are, “at 7.3 percent, and the number of unemployed persons, at 11.3 million, were both little changed in August. The jobless rate is down from 8.1 percent a year ago” (Groshen). There can be several reasons for a person to be unemployed: The lack of jobs, a person’s unwillingness to work, bad leadership, a person has left their current position and is unable to find a job that meets their skill sets, and lastly the lack of education. There will always be unemployment, understanding the types and how they impact our economy could help to find a solution to minimize the unemployment rate and help raise gross domestic product (GDP). In the textbook, Fundamentals of Multinational Finance, it explains that, “Growth in GDP also should eventually lead to...