Unemployment According to economist Edmond Malinvaud, the type of unemployment that occurs depends on the situation at the goods market A common typology of unemployment is the following * Frictional unemployment Frictional unemployment occurs when a worker moves from one job to another * Classical unemployment Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level * Structural unemployment Structural unemployment is caused by a mismatch between jobs offered by employers and potential workers

Historical unemployment Measurement The unemployment rate is expressed as a percentage, and is calculated as follows: As defined by theINTERNATIONAL LABOURE ORGANIZATION, "unemployed workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work. The ILO describes 4 different methods to calculate the unemployment rate 1- Labour Force Sample Surveys 2 -Official Estimates 3- Social Insurance Statistics 4- Employment Office Statistics

Costs of unemployment * Individual The fear of job loss can spur psychological anxiety SOCIETY there is a trade off between economic efficiency and unemployment: if the frictionally unemployed accepted the first job they were offered, they would be likely to be operating at below their skill level, reducing the economy's efficiency.frictionally unemployed

Causes There is considerable debate among economists as to the causes of unemployment Classical or neoclassical focuses more on rigidities imposed on the labor market from the outside Though there have been several definitions of voluntary and involuntary unemployment in the economics literature Voluntary unemployment is attributed to the individual's decisions involuntary unemployment exists because of the socio-economic environment in which individuals operate

This is an example of statistics of unemployment Date of InformationPercent ChangeRankUnemployment rateYear % % est.0.00 % % est % % est.0.00 % % est.0.00 % %2008 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. The unemployment rate is also used in economic studies and economic indexes.labor forceeconomicindexes

In 1837 political cartoon about unemployment in the United StatesUnited States Unemployed individuals are unable to earn money to meet financial obligations

Solutions Societies try a number of different measures to get as many people as possible into work. * Phillips Curve This involves increasing inflation to reduce unemployment by fooling workers into accepting jobs at a lower rate than they would otherwise have done, due to the declining value of money. * Supply side Supply side reforms also increase long-term growth. * Tax-related One structural solution to unemployment proposed was a graduated retail tax, or "jobs levy", to firms where labor is more expensive than capital>

Name : Amal Muhammad Al-Libdi Section : A Course Number : 3143