Unemployment In The United States Essay

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Unemployment in the United States
Unemployment occurs when a person or someone does not have a job. This lost income and output coupled with the economic and psychological cost of unemployment on the individual and the family are the real costs of unemployment (McEachern, 2015, p.104). Unemployment is something that will continue to take effect throughout history. This essay will explain unemployment in the United States, the four sources of unemployment, and the three main causes of unemployment.
The underlying principles of why unemployment occurs remain the same. The U. S. unemployment rate stood at a 17-year low of 4.1 percent for the sixth consecutive month in March 2018, slightly above market expectations of 4 percent (United States …show more content…

Frictional unemployment occurs because job seekers and employers need time to find each other (McEachern, 2015, p.110). An example of frictional unemployment is when a student graduates from college. They are unemployed until they find a job and must join the labor force. This type of unemployment is classified as voluntary unemployment because the worker makes is own choice to remain unemployed rather than picking the first job that comes alone. The second source of unemployment is seasonal. Seasonal unemployment is caused by seasonal changes in the demand for certain kinds of labor (McEachern, 2015, p.110). Examples of seasonal unemployment would be someone who operates an ice cream truck, landscaping business, or harvest corps. This is due to regular change in seasons. The third source of unemployment is structural unemployment. Structural unemployment occurs because of changes in tastes, technology, taxes, and competition reduce the demand for certain skills and increase the demand for other skills (McEachern, 2015, p.110). This type of unemployment seems to be the most common. Examples of structural unemployment is when a company replaces a worker that operate a certain machine with a robot. Technology advances is one of the main causes of structural unemployment. The last type of unemployment is cyclical unemployment. Cyclical unemployment is unemployment that fluctuations with

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