The economic situation in the state affects each of its inhabitants. If there is a rise, people have a job and the maximum necessary for life. In the event of an economic crisis, many residents feel the inefficiency of their employment, the level of well-being of the population falls.
What is considered unemployment?
Unemployment is considered to be a social phenomenon in which a part of the population capable of working remains without work and without income, but is actively searching for it. It is worth paying attention to the fact that the following category of population is not considered unemployed:
- people who were looking for work but stopped doing it;
- who simply do not want to work;
- household women (although they work all day, but not to the benefit of society);
- full-time students;
- stray people (without a specific place of residence);
- pensioners;
- disabled people.
Between the main groups there are constant movements, changes. These are the following categories:
- working (employed);
- unemployed (unemployed);
- not included in the workforce.
Some of the "employed" lose their jobs, moving into the category of "unemployed". And, on the contrary, part of the unemployed find a job and thereby move into the category of employed. A certain proportion of people quit, retire, and move into the category of “housewives,” thereby replenishing the group of “not included in the workforce”. However, at the same time, someone begins to actively seek work. When the economy is in a stable state, the number of people losing their jobs is equally actively looking for work.
It is interesting that natural unemployment is seasonal unemployment, which occupies a special place among the types of this phenomenon. We will talk about her a little later.
Types of Unemployment
There are several main groups of this phenomenon in the state:
- frictional - lasts one to three months and is associated with the search for a new job;
- structural - arises when the structure of enterprises changes and the problem of finding a new job in another specialty;
- institutional - arises when the level of wages is low and exists unemployment benefits (some segments of the population prefer to receive benefits than work for a minimum wage);
- not the last place in the list is cyclical, seasonal, frictional unemployment, which can be predicted.
In fact, this phenomenon in society can be divided into two types - voluntary and forced. Friction and institutional are referred to voluntary, and structural and cyclic to forced.
The main feature of frictional unemployment is that job seekers are already qualified workers with a certain specialization and level of training. Therefore, the main reason for this type is the imperfection of the information system for the availability of vacancies.
Cyclical, in turn, is due to the decline in business activity, which is changing its activity. This usually occurs during periods of economic crisis in the state.
This type of seasonal unemployment arises when labor demand fluctuates due to fluctuations in certain sectors depending on the seasons (refers to the forecast).
Reasons for this phenomenon
There are industries where work is only seasonal. Because of this, for the period when production or demand is declining, the employer dismisses workers, which results in the so-called seasonal unemployment. It exists in the "dead seasons". Such a concept is individual for each profession.For example, shoe repair masters experience a decline in demand for services in the summer, and builders, on the contrary, in the winter. Seasonal workers agree to work for a certain period, demanding higher wages, realizing that they will then have to exist for some time without a profitable place. Or they don’t go to a very high-paying job, knowing that they will be protected by the benefit in the absence of work.
Thanks to these two factors, seasonal unemployment refers to the frictional type, which is defined as temporary. If the state has a high unemployment rate, then this type takes up a small percentage in total.
The economic situation in the country and cyclical unemployment
Such types of cyclical and seasonal unemployment have a very negative impact on the country's economy. These species are inherent in countries in economic crisis. As a rule, a significant part of the able-bodied population is involved in this phenomenon. Most often, massive reductions begin everywhere and at the same time in most of the firms on the market. Widespread cyclical unemployment is a consequence of the same comprehensive bankruptcy of enterprises.
Characteristics of Seasonal Unemployment
Characterizing the seasonal type of unemployment, we can say with confidence that it is inherent in such areas as the tourism business, agricultural work, certain types of fishing, which, as a rule, are caused by weather conditions and are easily predicted. It matters what time of year at the moment, whether the climate of the area allows you to perform any special work. In cities near the sea, good coastal cafes, hotels and private individuals who rent rooms or provide food for vacationers can boast good earnings during the summer. In other cities, ski resorts open in winter and so on.
What is the difference between this type of unemployment from others
The seasonal type differs from others primarily in that it can be predicted. So, seasonal unemployment, the causes that cause it, become very clear - they are associated primarily with the seasons and weather conditions. Dependence on these criteria is inherent in quite a few firms. Employers do not want to pay during periods of lack of demand for their goods or services, that is, during downtime, although they could pay a minimum wage, and workers would be considered as being on vacation. This is the essence of seasonal unemployment and its short-term nature. After all, even sometimes in educational institutions for some summer holidays some are fired. But such a phenomenon is extremely rare.
Seasonal and hidden unemployment - what is the difference?
We have already analyzed the dependence on the season or weather conditions. What is hidden unemployment? This type also occurs during the economic downturn at some enterprises. When they are in conditions of incomplete workload and resource use, there is a need to reduce the staff. But management does not dismiss those, but transfers them to a part-time week or sends them on holidays that are not paid. Formally, such employees are registered as employed. But in fact, they do not receive a salary, which indicates their unemployment. In this case, we are talking about inefficient human employment. This is the difference between these two types of unemployment in the state. Such cases during times of economic crisis in the country are common.
The consequences of unemployment for the state
A market economy necessarily assumes the existence of this socio-economic phenomenon. This is an integral part of the market, with all its ups and downs. The consequences include the following phenomena:
- an increase in the criminal situation;
- growth of psychoemotional tension;
- an increase in the number of mental illnesses of individuals;
- increase in social difference between the layers of the population;
- a statement of mass depression;
- decreased activity in relation to labor;
- depreciation of education;
- increase in social benefits;
- reduction in production capacity;
- downgrading of specialists in various fields;
- national income suffers;
- budget cuts due to tax cuts.
There is also the concept of economic and non-economic effects of unemployment. Non-economic ones are manifested in mental disorders, health disorders (the development of cardiovascular diseases), destabilization of family relationships on a personal level, and social instability in society. It is established that at the state level, developed unemployment and poor material support of the population lead to coups, various riots and revolutions. In addition, professionals who remain unemployed for a long time lose their qualifications, the mortality rate is growing, and the like.
Government measures to prevent widespread unemployment
First of all, the state should regulate the spheres of production and life. The measures that governing bodies take on unemployment may vary, but the effect is achieved only comprehensively.
There must be a working retraining system, the development of creative and spiritual forces, the introduction of new technologies, conscious participation in socio-political movements, the creation of a system of employment services, the payment of social unemployment benefits, the improvement of the information system for the availability of vacancies, the development of budget jobs and others.
