Frictional and structural unemployment

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Discuss possible solutions (private and/or government) to cyclical, frictional, and structural unemployment. Please note that this question requires you to read ahead, and it might require a bit of outside research. Unemployment has been a major issue since the great recession since 2007 (Mateer, 2014). This occurs when the when a person actively looks for work and cannot find work, because the economy is not willing. Three types of unemployment are structural, frictional, and cyclical unemployment. The solutions to these types of unemployment are provided both privately and through the government. First, in an evolving economy creative destruction leads to structural unemployment. Creative destruction when out dated products and or technologies become obsolete. This causes structural unemployment which is changed by developmental arrangement of the economy. A way the government can help is by giving tax breaks and subsidies to people that are trying to reeducate themselves for the new work force. Companies can also, retrain their employees with new skills so that they can keep the jobs that they have. Those are ways that the government and private companies can help with structural unemployment. Next type of unemployment is frictional unemployment is the time delay in which a qualifying person finds a matching job available in a healthy economy. Hiring companies can help this type of unemployment can help by setting up local job fairs. Many people qualified will come with resumes looking for employment and the companies can interview, and also pick and choose. It is a win- win situation for both employers and the people seeking employment. Companies can also post jobs online. The government offers unemployment insurance (unemployment benefits), in which unemployed workers can receive a percentage of their pay during this transitional phase of unemployment. These are the ways private companies and the government can help frictional unemployment. When cyclical unemployment occurs, an economy cannot support full employment, because of a recession or slowed economic growth. Jobs just are not available for people seeking employment. Unlike frictional and structural, cyclical is the worst kind of unemployment. One way that the government can help with this this type of unemployment is by slowing inflation. When slowing inflation, it gives the economy time to recover from a recession. All people can do is really wait until jobs are available.

Reference no: EM131169624

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