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Category: Science and Technology

Date Submitted: 10/07/2010 03:05 PM

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Unemployment strikes again

Unemployment occurs when a person is available and willing to work, but currently without work. The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. There are three main types of unemployment, which are Cyclical, Frictional, and Structural unemployment.

Cyclical unemployment occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high. Cyclical unemployment is also caused when the economy goes into a recession and workers are laid off. Frictional unemployment occurs when people are moving between jobs, careers, and locations. Structural unemployment comes from there being an absence of demand for the workers that are available, typically caused due to technology advancements.

In this article written by Robert Travis Scott Bill Seeks job cuts for State agencies a cross between Cyclical and structural unemployment is illustrated. Baton Rouge Sate agencies would have to reduce staff positions by 5 percent per year for the next three years under a proposal inspired by a government streamlining commission and passed by the Senate and Governmental Affairs Committee on Wednesday April 28, 2010. Senate Bill 293 by Sen. Jack Donahue, R-Mandeville, would require state departments to conduct and analysis of staffing needs and methods to implement the cuts, including evaluations of whether vacant positions should be filled. Donahue said a baseline of job numbers will have to be established for each state agency so that the 5 percent reductions can be measured. He said amendments to the bill on the Senate floor will address a method for setting those benchmark staff levels. The committee adopted an amendment that would make the reductions a mandate rather than a conceptual goal. The amendment also requires that the reduction be...