Research paper based on previous essay on unemployment

Unemployment

Student name

Institution affiliation

The rate of unemployment

Today the rate of unemployment has skyrocketed to higher levels in many countries in the world, especially during this time of the pandemic. Many countries are struggling economically which directly impacts employment from a negative perspective. Many people are surviving in this era of the pandemic, but also even before the pandemic unemployment was still an issue that ailed the world. In the document, I will focus on unemployment on a bigger scope to unleash the causes for unemployment, the impact it has on society, the remedies that need to be applied, and economic forecast.

The causes of unemployment are parallel to the type of unemployment that is being discussed. There are different types of unemployment. The first type of unemployment is voluntary unemployment which is categorized by an individual choosing not to work this type of person attracts different feelings about them, is either they are envied by those who work especially the elites, or are seen to be unlucky and they really need a job. Generally, it reflects that when one decides to be unemployed then they are okay with their situation. Another type of unemployment is friction unemployment which is a result of the time spent moving from one job to another or when graduates are looking for a job after their studies. Sometimes frictional unemployment is caused by companies shutting down, or reducing their operation which forces them to lay off some of their employees. Frictional unemployment is not a bad thing; it just takes time to match a job to your skills. In the mid-2000, before the 2008-2009 recessions, it was true that about 7% of the U.S workers lost their jobs. Within a period of time, new jobs were created for the American people were able to get new jobs (Dean et al, .2020).

Another type of unemployment is structural unemployment. It is a category caused by various factors that are involved. The factors involved are occupational immobility where an employee finds it difficult in learning new skills that apply to new industries, for example, technological companies that require technical know-how of the job and a person do not know may cause his or her unemployment. Geographical immobility is also a factor that causes unemployment because there may be a job in Australia but it is very difficult to move. Technological change for the development of labor saving technique by the use of machines will also lead to reduced employment in a company. Finally in the discussion on the cause of unemployment is cyclical unemployment that is tied to the business cycle where a large number of people are unemployed during the recession period of the business due to the economical ups and downs.

In any condition of the economy, there must be unemployment, whether the economy is booming or is at a recession. The natural rate of unemployment is what describes this type of condition. The natural rate of unemployment would happen a as result of the combination of economic, social, and political factors that exist at a given time. It is the usual way of companies expanding and contracting their workforce depending on the dynamics of the economy, social and political pressure that happens in the involved country. The natural rate of unemployment relates to two essential concepts: full employment and potential real GDP. The economy is considered to be at its full employment when the actual unemployment is equal to the natural unemployment and another way of looking at it is when the economy is at its full employment, the real GDP equals the potential real GDP (Dean et al. 2020). In the opposite scenario, when the economy is below full employment it reflects that the unemployment rate is greater than the natural unemployment and the real GDP is less than the potential one. Workers’ productivity detects their wages in the economy. If the workers underperform then they attract lower wages and on the other hand when workers produce at a higher level then they attract more wages. This point is clear because when workers are paid more than they produce the business will be pronounced bankrupt and if they are paid less than they produce and the market is competitive,  the business will lose its worker to other firms that will pay them well.

Unemployment has really impacted the lives of many people in the world, it is estimated that the economic downfall of many countries has caused many people to suffer from mental illness. In some cases, some people attempt to commit suicide due to economic challenges that they are facing (Silva et al, 2020). When we reflect on 2008-2009 there was a global economic crisis that negatively affected the macroeconomic performance of many developed countries as well as the developing countries. A good example is Turkey where its growth and macroeconomic performance were really weakened significantly. Many countries that were affected by this crisis started to implement expansionary fiscal and monetary policies aiming at growth. Due to the expansionary policies implemented after the crisis, emerging market economies and developing countries were affected to different levels( Mavroudeas et al no date).

Some remedies can be applied during the period of economic crisis. Fiscal policy, where the government invests in new infrastructure that stimulates demand and eventually creates jobs for its citizens, reducing the income tax cuts that will give them an advantage of spending. Monetary policy, where banks reduce their interest rates which will encourage borrowing as it makes it cheaper. Application of supply-side policies that reduce government interventions into businesses, to help in the smooth operation of the business. For preparation purposes, there should be a form of forecasting the economy. The latest method that can be used in economic forecasting is the use of a support vector machine that can deal with complex problems. Its accuracy is approved therefore the machine can obtain accurate prediction results (Hu, 2020).

Conclusion

Economic problem is the cause of unemployment and it affects many countries in the world. There are many reasons that cause unemployment, It depends what affects the individual involved. At the same time employment is parallel to the development of a country, the more people working the more developed the economy is and the better the economy of that particular country

References

Dean, E., Elardo, J., Green, M., Wilson, B., & Berger, S. (2020). Types of Unemployment. Principles of Economics: Scarcity and Social Provisioning (2nd Ed.).

Hu, Z. (2020). Economic Forecast of Coastal Regions Based on Support Vector Machine Model. Journal of Coastal Research, 110(SI), 211-214.

Mavroudeas, S., Soydan, A., & Altun, T. GLOBAL ECONOMY ECONOMIC CRISES & RECESSIONS.

ÖZDEMİR, M. Ç. VOLUNTARY UNEMPLOYMENT.

Silva, M., Resurrección, D. M., Antunes, A., Frasquilho, D., & Cardoso, G. (2020). Impact of economic crises on mental health care: a systematic review. Epidemiology and psychiatric sciences, 29.

Above I have attached the previous essay in which this paper is based on.
Your Perspective (Essay 3)
Explain your position on the issue and what points support your stance.

The Other Perspective

Consider the other side of the issue and what are the counter-points.

Rebuttal
This is where you directly address the counter-points from the other perspective.

Your Final Conclusion
Your final conclusion is the place where you make your final point. Be sure to revisit your introduction here and give a final, powerful thought
If possible, please use mdc (Miami Dade college) library database for sources