Underemployed can be described as being inadequately employed, such as a low-paying job that requires fewer skills than one possess. (Daly, Hobijn, and Kwok 2015) Making ends meet can be difficult for one who has been affected by this economy over the past few years. America still has a high unemployment rate since the decline of the current job market. And many Americans are struggling to establish the skills needed for employment, or the underemployed are force to lower they skill to make a profit. America’s economic status has force the underemployed and unemployed to make ends meet with the current jobs available.
The first form of unemployment is Frictional unemployment. Frictional unemployment arises because workers seeking jobs do not find them immediately. While looking for work they are counted as unemployed. The amount of frictional unemployment depends on the frequency with which workers change jobs and the time it takes to find new ones. Job changes occur often in the United States.
October 5, 2008. http://investopedia.com/printable.asp?a=/articles/07/subprime-blame.asp Amerman, Daniel. “The Subprime Crisis is Just Starting.” March 20, 2008. Financial Sense University. October 5, 2008. http://www.financialsense.com/fsu/editorials/amerman/2008/0320.html Bajaj, Vikas and Story, Louise. “Mortgage Crisis Spreads Past Subprime Loans.” February 12, 2008.
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The skilled worker gap is developing at large due to the significant decline in the manufacturing sector (aspects of globalization and off-shoring) that appear less stable and attractive now as large number of workers approach retireme... ... middle of paper ... ...rker employed). And, businesses may decide to increase production by making greater use of capital inputs such as extra units of machinery. A growing economy creates jobs for people entering the labor market for the first time; and it provides employment opportunities for people unemployed and looking for work.” Article Source: “Help Wanted: In Unexpected Twist, Some Skilled Jobs Go Begging,” by Ben Casselman, The Wall Street Journal, Column A1, November 26, 2011. http://online.wsj.com/article/SB10001424052970203707504577010080035955166.html Frederic S. Mishkin. Macroeconomics Policy and Practice. Pearson Education, Inc., Addison-Wesley 2012.
Sub-prime Mortgages and the Building Blocks of the Financial Crisis ... ... middle of paper ... ...pubs/ft/fandd/2008/06/dodd.htm Carmassi, J, Gros, P and Micossi, S. The Global Financial Crisis: Causes and Cures. Journal of Common Market Studies. Vol.47, No.5, pp. 977-996, 2009. Available at: http://www.relooney.info/SI_FAO-Asia/Global-Crisis_23.pdf Blakenburg, S and Palma, J.G.
Mankiw (2008) says that frictional unemployment is “unemployment that results because it takes time for the workers to search for the jobs that best suit their tastes and skills” (p. 601). The rate of frictional unemployment will never be zero so the full employment never reached. The new entrants like fresh graduates and re-entrants like housewives will also lead to frictional unemployment. The period of frictional unemployment is determined by the unemployment insurance benefits and the speed of the information (Mouhammed, 2011). According to Arnold (2011), the major cause of frictional unemployment is imperfect information, which means that the lacking of information required in matching a job applicant immediately with a job vacancy.
Those who are employed will be severely affected in case of a rise in unemployment in the economy. Noticeably, reduction in wages and salary leads to decrease in the amount of tax collected on the income. This further hinders the scope of availability ... ... middle of paper ... ...l make the same salary that they had previously. This increases the debt owed by those families. Usually the amount of unemployment benefits is not enough to keep this cycle going.
Most people do not know that there are different types of unemployment. The types of unemployment are: structural, frictional, cyclical, and sometimes seasonal (Gordon and Amerson 4). Structural unemployment is when there is not enough demand for workers that are available. The two causes for this type of unemployment are change in technology and taste. An example of change in technology is when you are working for a typewriting company and you are fired because everyone is now interested in personal computers.