Unemployment occurs when a person is not working but is actively looking for work. Economists have essentially identified four different types of unemployment which are frictional unemployment; structural unemployment; seasonal unemployment; cyclical unemployment. Frictional unemployment is best described as a highly skilled worker that is in between jobs because they are holding out for right job that best suits their needs and skills. Frictional unemployment usually occurs when someone leaves their job in search of a better one or a when a college graduate is seeking employment and wants to find the best job in their field.
Frictional unemployment is ongoing and impossible to eliminate even in the best performing economy. As a matter of fact, frictional unemployment is the only type of unemployment that is actually beneficial to the worker and the economy because it encourages workers to seek out the job that they are best suited for, while giving companies the opportunity to hire the best employee who can provide useful skills to benefit the overall growth of the company.
The thing that distinguishes frictional unemployment from structural unemployment is that a suitable job exists for the unemployed worker. The problem is the worker hasn’t found the right opportunity that best suits their needs and skills. In many cases the unemployed worker may not know about available jobs or the jobs that they are aware of may not meet their needs such as the location they want to be in or meet their salary expectations.
Per the article “Little Federal Help for the Long-Term Unemployed”, written by Annie Lowrey and Catherine Rampell, economists predict that frictional unemployment could be transformed into structural unemployment because the problem will no longer be that there are just too few jobs and too many job seekers, but a large group of skilled workers like craftsmen will no longer match employer’s needs as technology continues to advance. However economist debate that there should be policies in place to help the long-term unemployed to ensure that they have the necessary skills to compete for jobs that are added to the economy.
For example, converting construction workers into oil and gas extractors and administrative assistants into home health care providers would keep them gainfully employed when the demand for those types of jobs decreases. According to the Bureau of Labor Statistics the national unemployment rate was 7. 9% in October 2012. The Bureau of Labor Statistics shows that the frictional unemployment rate for ……. Seasonal unemployment is usually short-term and only affects certain industries or occupations, in which a person is employed only during certain times of the year because of the nature of their work.
This situation is most commonly caused by regular recurring changes in the hiring needs of certain industries or occupations based on seasonal or weather dependant conditions. For example a farmer may not be needed between the harvest and next planting. Another example would be a lifeguard who is only needed during the summer months when people are usually at the beach or pool. Likewise with weather dependant conditions, a construction worker can’t work in inclement weather.
Workers who accept employment in these industries or occupations are usually aware of these conditions. Unlike cyclical unemployment, which can occur at any given time, seasonal unemployment is more predictable because of certain industries or occupations that are affected. Take for example a department store Santa Claus knows that there will be 11 months of unemployment each year as Christmas only comes once a year in December. Workers accept these types of jobs with full knowledge that they are only temporary and usually pursue another career during their down time.