2007-05-30 15:20:29 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You must firstly study how unemployment is calculated in your economy. Their is a very stringent criteria and the rates are usually misleading. You cant have 0% unemployment because of the following factors: fricitonal, seasonal, hardcore, structural unemployments.
Frictional unemployment refers to those who are in between jobs. eg. leaving from Firm A and going to Firm B and are currently unemployed in the mean time.
Seasonal unemployment refers to persons who are unemployed due to seasonal changes. Santa Clause is usually unemployed during easter :P and the easter bunny is usually working over time during this time and during christmas its the other way around :D Jobs are lost due to seasonal changes in demand and supply
Structural unemployment occurs when persons skills and expetise is no longer required and are unemployed. We dont have many lumbejacks anymore because machines are used to cut wood down. So all the people that trained to be lumberjacks lost their jobs and are now structurally unemployed. Usually caused by rapid techonological movements.
Harcore unemployement refers to those who are undesirable for employment. Just unemployable for a variety of reasons.
The makeup of this is called natural unemployment and this will always be present. What governments try to do is try and minimise the percentage of cyclical unemployment. hence when your economy is booming you will find close to 0% cyclical unemployment but may still have natural unemployment.
When you say a bus is full, u refer to all seats and standing positions being taken up. However, physically their is still air and space in the bus. I spose this can be used as an example of what unemployment refers to in regards to an entire economy.
Hope this helps. Also remember to read up on the criteria of what is an emplyed person and what is an unemployed person. Because is some cases someone who is not looking for work is not unemployed, people under working age aren't etc etc.
2007-05-30 18:38:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The easy answer is that not everybody is employable or looking for employment that fits their skills. If I'm a 19 year old high school drop out I'm going to stay unemployed if I keep going for jobs paying $70k or more. Also, you always have some people between jobs, sometimes only for a coule of months. No matter how good the economy you'll always have 3-4% unemployment.
2007-05-30 15:28:21 · answer #2 · answered by javaman 2 · 1⤊ 0⤋
The United States is close to "full employment".
There will never be full employement because of the following:
1) Children that do not work
2) Women that do not work & stay at home to raise children
3) Older people that do not work
4) Truly handicapped people that can not work
5) Lazy people on welfare that choose not to work
6) People between jobs, choosing to take some time off from working, etc.
2007-05-30 16:59:05 · answer #3 · answered by InReality01 5 · 1⤊ 1⤋
When the unemployment rate drops below about 4% it is considered full employment. At any given point in time, approximately 3.5% - 4% of the workforce is "between jobs" for reasons other than economic conditions, i.e. fired, quit, taking time off, etc.
2007-05-30 15:30:17 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋
During Reagan's recession, unemployment went up to 10.3 percent. Then it went down again, and folks thought he was a genius. Go figure.
2016-05-17 09:08:09 · answer #5 · answered by ? 3 · 0⤊ 0⤋