Курсовая работа: Unemployment: reasons and main forms

Thus, the next publication «Key indicators of a labour market» gives wider submission that in the SQUANDERER name «comprehensible deficiency of jobs» in the world. « Worthy »work ensures necessary productivity to the employer who in turn supports safety precautions, grants fair payment and social protection by worker and to their families, thereby promoting a normal life of company.

Hundred millions men and women work, applying all forces, however conditions in which they work, do not allow them to ensure own families to the most necessary. People continue to live below the poverty line, every day falling all below this line. The general director the SQUANDERER Mr. Somavija has declared necessity of increase in labour efficiency for the poor countries that would help people to earn more.

By data the SQUANDERER of 1,5 billion people in the world — or third of able-bodied population — not completely use the working potential. The problem consists that people in the poor countries want, but has no possibility to work. The income on one member of the family there does not exceed $2, it is catastrophically low figure. More than half of all taken are subject to threat to remain below the breadline. The majority of such people works in shadow economy and does not get practically under any protection. In the Central Africa and Southern Asia of 70 % taken are in similar position.

Besides, in the report the situation which has developed on labour markets is reflected. So, about half of able-bodied population all over the world does not leave on labour markets of the countries. Over the last 10 years the passive behavior on labour markets was more often fixed at women, rather than at men. Only 2 from 10 men do not show any activity while at women such position meets in half of cases.

«Key indicators of a labour market» into which have entered 20 various indicators reflecting a situation which have developed on a labour market with its productivity, working conditions, wages and indemnifications, represent a real picture of that as a whole occurs to a labour in the world.

Chapter 2. Unemployment in practical

2.1 Unemployment Insurance

One government policy that increases the amount of frictional unemployment, without intending to do so, is unemployment insurance (or, as it is called in the UK, national insurance). This policy is designed to offer workers partial protection against job loss. The unemployed who quit their job, were fired for just cause or who have just entered the labour force and not eligible. Benefits are paid only to the unemployed who were laid off because their previous employers no longer needed their skills.

While unemployed insurance reduces the hardship of unemployment, it also increases the amount of unemployment. The explanation is based on one of the Ten Principles of Economics. Because unemployment benefits stop when a worker takes a new job, the unemployed devote less effort to job search and are more likely to tern down unattractive job offers. In addition, because unemployment insurance makes unemployment less onerous, workers are less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Many studies by labour economists have examined the incentive effects of unemployment insurance. In one US study, when unemployed workers applied to collect unemployment insurance benefits, some of them were randomly selected and offered each a $500 bonus if they found new jobs within 11 weeks. This group was then compared to a control group not offered the incentive. The average spell of unemployment for the group offered the bonus was 7 per cent shorter than the average spell for the control group. This experiment shows that the design of the unemployment insurance system influences the effort that the unemployed devote to job search.

Several other studies examined search effort by following a group of workers over time. Unemployment insurance benefits, rather than lasting forever, usually run out after six month or a year. These studies found that when the unemployed become ineligible for benefits, the probability of their finding a new job rises markedly. Thus, receiving unemployment insurance benefits does reduce the search effort of the unemployed.

Even though unemployment insurance reduces search effort and raises unemployment, we should not necessarily conclude that the policy is a bad one. The policy does achieve its primary goal of reducing the income uncertainty that workers face. In addition, when workers turn down unattractive job offers, they have the opportunity to look for jobs that better suit their tastes and skills. Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

The study of unemployment insurance shows that the unemployment rate is an imperfect measure of a nation’s overall level of economic well-being. Most economists agree that eliminating unemployment insurance would reduce the amount of unemployment in the economy well-being would be enhanced or diminished by this change in policy.

2.1 Types of unemployment

There are various kinds of unemployment, each of which is generated by the reasons. Today economists prefer to speak not about unemployment in general, and to allocate its specific kinds:

· frictional

· structural

· cyclic

· seasonal

· voluntary

Frictional unemployment exists even in the countries enduring rough economic blossoming. Its reason consists that to the worker who dismissed from the enterprise or has left it of the own free will, some time to find a new workplace is required. It should suit it both by the nature of activity, and on payment level. Even if in the work market such places to eat, find them it is possible usually not at once. One people feel capable to perform more difficult and highly paid work and search for it, others are convinced that do not correspond to requirements of the workplace and should look for work with payment more low. In a free market society always there is a certain quantity of people which for various reasons search for itself for more suitable work Besides, on a labour market always there are unemployed who search for work for the first time (youth, the women who have grown up children, etc.). Such people also are considered at definition of level of frictional unemployment. These processes promote increase of efficiency of use of labour resources, their more rational distribution. The economic science considers frictional unemployment as the phenomenon normal and not causing alarm. Moreover frictional unemployment is simply inevitable in normally organised economy. Growth of frictional unemployment can cause a number of the reasons:

1) lack of information of people on possibility to find work on the speciality and with arranging level of payment in concrete firms;

2) the factors objectively reducing mobility of a labour. For example, the person has not found work in the city, but cannot move in other city where such work is, because of backwardness of the market of habitation or absence of a residence permit. Such situation is characteristic for Russia that is unprofitable distinguishes a domestic labour market from a labour market of the western countries.

3) Features of national character and a way of life. Frictional unemployment above in those countries which citizens prefer to live all life in the same settlement, that is differ the lowered mobility. At such way of life (characteristic and for many Russians) labour overflows between regions are reduced.

Structural unemployment. The manufacture structure cannot remain invariable. As a result of scientific and technical progress, technological changes, the labour demand structure varies also. The requirement for one kinds of trades is reduced, and other specialities disappear at all. But there is a demand for new trades. Earlier not existing. Such unemployment already where is more painful for people, than frictional.

Occurrence of structural unemployment means that many people should master new trades, to avoid structural unemployment it is impossible. It is connected by that technical progress all time gives rise to the new goods, technologies and even the whole branches (manufacture of personal computers, laser disks and fiber optics, for example, concerns them). As a result the labour demand structure strongly varies. And people with trades unnecessary more in former quantity appear out of work, recruiting of ranks of the unemployed. For example, import to Russia considerable number of personal computers has led to refusal of use of the big COMPUTERS which service needed a considerable quantity of programmers. Together with computers new "generation" of the software products, allowing to communicate with car without the intermediary – the programmer from abroad has come. To keep or get a job, programmers of old school had to be retrained, seize urgently modern languages of programming and new software packages. Changes in demand structure appear today more and more essential. The American experts, making the forecast of development of a labour market in the USA till the end of a century, have found out inevitability of serious changes on it. It has appeared that to 2000г. The number of farmers in the country will be reduced to 900 thousand persons, and the share occupied in the industry will fall from 18 % in 1990г. To 9,7 % to the XXI-st century beginning. The overwhelming part of hired workers will work in any branches of services, including 43 % - in computer science sphere. The number of workplaces for the people owning following specialties will fastest grow:

1) the bookkeeper or the auditor

2) the mechanical engineer

3) the staff nurse