What happens unemployment

causes of unemployment are different, so it can be subdivided into types.Due to the reduction in aggregate demand for labor has arisen due to the crisis of overproduction and has a repetitive, cyclical unemployment occurs.During this period, there is a large number of people willing to work but unable to find work as a period of decline in production, which is characterized by a market economy.

But in the period of economic recovery when demand is greater than supply and there is full employment, unemployment still remains.During this period, the level, the experience of most developed countries does not exceed 4-6%.If there is full employment frictiona
l and structural unemployment, which together are called natural.

form of natural unemployment

American scientist monetarist Milton Friedman proposed regarded as natural are two types of unemployment: frictional and structural.Frictional unemployment - this is a temporary condition for a number of working-age population that is in search of a more suitable job for himself or is waiting for them will be an interesting vacancy.When the natural unemployment the number of people in search of work, equal to the number of job vacancies.This means that those who want to work can find a job, even after some time.

level of frictional unemployment depends on how quickly will be found jobs.This level increases over time, as the increased level of social protection of citizens - increases the amount of unemployment benefits and the minimum wage, reduced requirements for those who receive the benefits.Therefore, this type of unemployment is no urgent need to quickly find a job and find a job they can stretch for a long time.

Another form of the natural unemployment rate - structural unemployment caused by scientific and technological progress, technological changes in the industry.These factors influence the structure of the economy and entail changing it.There is a certain demand for labor, having a particular qualification, which will be satisfied only after some time, when this force will be attracted from other regions, or will result in the preparation of the necessary personnel.This form of the natural unemployment rate is usually forced.