Different Types of Unemployment Essay

1059 Words 5 Pages
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want …show more content…
People and firms are engaged in a search to match up their tastes and skills. This increases transition time used for the people to search for interested job and at the same time tallying with employer’s intention. If there are employment services and job fairs to match the qualified applicant with the vacancies, frictional unemployment can definitely be reduced (Littenberg & Tregarthen, 2009).
The second type of unemployment is structural unemployment. As Sexton (2008) mentions, structural unemployment is due to structural changes in the economy that unqualified workers are laid off and qualified applicants are employed to fill in the vacant. The major difference between frictional unemployment and structural unemployment is frictionally unemployed workers have marketable skills while structurally unemployed workers do not have transferable skills (Tucker, 2010). Nowadays, as the world is developing and everything is getting improved, it changes the demand of labour in both occupational and geographical aspects (McConnell, Brue, & Flynn, 2012). In the occupational aspect, new products and advance technology are introduced. When workers are lacking of available skills and can no longer contribute to the community, structural unemployment

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