Three Causes Of Unemployment

Unemployment occurs when a proportion of the population of a nation’s economy who are willing and able to work, looking for a job actively for four weeks but cannot attain a job. Any other person who is not willing or is unable to work is not considered “unemployed” but rather “economically inactive”. When it comes to the unemployment of an economy there are three main types of unemployment that occurs, frictional, structural, and cyclical unemployment. Frictional unemployment is a constant player in an economy unavoidable due to its prevalent nature because it refers to the state of workers who are in temporary transitions and move from job to job for a variety of reasons, like benefits, skills, or personal matters. Another common cause for

The advancements in technology also play a key to this type of unemployment for the complexities that businesses face in an effort to be more efficient and competitive therefore sometimes requiring less individuals to do what technology can do in a few machines and there acquiring less individuals to handle the technology. The last main unemployment type is cyclical unemployment, which occurs when an economy does not demand as many goods and services as employees are willing to provide, creating a large competition for the same job amongst the same qualifying candidates. Usually unemployment spirals until government intervenes in some way to reproduce revenue and stimulate the economy as has been done in the past and will be reviewed here. In the United States unemployment is measured using the establishment report, which surveys employers about their payroll and the Current Population Survey that surveys households about their employment

Postwar, the United States economy seemed healthy due to consumer spending, social spending, and a focus on military spending. During this time President Truman and congress passed weak measures to ensure the stability of the postwar economy. In 1957 President Eisenhower eager to alleviate the 1957 recession signed the Federal Aid Highway Act authorizing the construction of an interstate system, which would employ thousands, help between interstate transportation and thus help combat the recession and stimulate the economy. Further into the presidency of John F. Kennedy, he would expand the Social Security and unemployment benefits and cut taxes. Postwar 1948 the United States has experienced several recessions that have challenged the American people and put to test the strengths, knowledge, and capacities of the state and federal government to stabilize the economy and help the