3 Introduction Unemployment is an economic indicator that refers to the number or proportion of pe0ple in an economy who are willing and able to work, but are unable to get a job; a person in this situation is said to be unemployed. People who are not willing or able to work, for whatever reason, are “economically inactive” and do not count towards unemployment figures High levels of unemployment are usually of a typical of a struggling economy, where labour supply is outstripping demand from employers. When economy has high unemployment, it is not using its economic resources in the best possible way
4 Types of UnemploymentEconomics distinguish a number of types of unemployment• Cyclical unemployment is brought about by the vagaries of the business cycle• Structural unemployment is brought about by changes in the economy or the labour market, when the jobs available do not fit the workforce’s skills• Frictional unemployment is the phenomenon of people being “between jobs”• Seasonal unemployment is linked to certain types of seasonal jobs, such as farm work and construction
5 History The history of unemployment in the UK is central to both the economic and social history of the country. The 1950s and 1960s saw a very rate of unemployment (around 3 per cent on average) as result of the ‘post war boom”. Serviceman during the second world war had been promised full employment after victory, and no government of the period was prepared to break this pledge. Technological advance , a stable international trade environment, the success of Keynesian economics and the stability of the Phillips Curve (which postulated a relationship between high inflation and high unemployment) created a situation which did approach full employment – although of course, at the time the majority of women remained in the category of the “ economically inactive”. Unemployment continued to rise and official figures published in October 2011 showed that for the June to August quarter, 2.57 million people were unemployed – the highest since 1994.
6 Background The trend of rising unemployment continued through the last quarter of 2011 and the beginning of 2012, but there were increasing signs of stabilisation in the labour market and by March 2012, although unemployment showed a rise of 28,000 compared to the previous quarter, this was 5,000 below the headline figure of the previous month. The figures published in April 2012 showed the continuing rise in employment was coupled with a fall in unemployment of 35,000 on the quarter, to 2.65 million. This is dispute the fact there were more people in the labour market, with a fall in inactivity of 25,000. Employment Minister, Chris Grayling, said that whilst any fall in unemployment was very welcome , he remained “cautious” about the next few months in light of the continuing economic challenges.
7 Controversies Throughout history , policy- makers have from time to time taken the view that the macroeconomic benefits of high unemployment outweigh its economic and social costs . This was the case during the early 1980s. Most of that time, however, governments are unwilling to permit high unemployment , due to demonstrated social effects, the economic underperformance it reflects and the public cost in terms of benefit payments it demands. Nevertheless, as an aggregate figure the “ headline” unemployment figure and rate can only tell part of the story. Structural differences between the regions of the UK have often meant that a nationwide figure masks considerably higher than in the prosperous South East and London. Even within regions, there are local pockets of high unemployment . Many towns remain dominated by a small number of large employers: when a locally significant business closes, such as the mines during the 1980s or Rover’s Long bridge plant in Birmingham more recently, the effect can be devastating
8 Parties At present , there are two principal measures of unemployment used by the Government :the International Labour Organisation(ILO) measure ( the UK’s version being known as the Labour force Survey or LFS unemployment); and the Claimant Count . The former is based on a survey of 57,000 households, and classifies participants as employed, unemployed or economically inactive on the basis of work done in the previous work. The letter is based on the numbers claiming unemployment related benefits.
9 Causes Unemployment is cause by many factors in a modern market economy. It can be caused by rapid technological change, business cycle or recessions , seasonal factors in some industries particularly such as changes n tastes and climatic conditions which affects demand for certain products and services, individual perceptions and willingness to work and search for jobs, their values and attitudes towards some jobs and about employers, accessibility for retraining and acquisition of work skills, willingness and perception of unemployed of the benefits of training and the possibility for them to get a job after the training even though they have a chance to get a job, discrimination in the workplace based on race , colour, religion, ethnicity, age and class
10 Conflict causes Unemployment in a particular period can be combination of caused by social factors and how the economy as a whole works and also due to the subjective individual factors. In a sociological point of view according to functionalist and conflict theorists the unemployment is caused primarily by the social factors than by the individual factors. Individuals construct their own social constructs and perception and they can be subjective in their behavior and therefore can become unemployed even though the actual condition they can get a job in the job market.
11 Recommendation This complete lack of common sense seems to stem from overly rigid processes that presume everyone should be, and will be, working in the same pattern. I suggest that the real solution to this has to be people focused. Stop tying up Jobcentre Plus staff and job seekers in reams of paperwork. Free up staff to use their own common sense, their own local knowledge of work and , crucially, their own judgement in each individual case. The country needs temps, and temping can be a fantastic choice – be it a way to get back into work after children , or after a period of unemployment. But , as it stands , we are squandering the talents of part of our workforce because bureaucracy does not allow for creativity or flexibility.
12 References http://www.politics.co.uk/reference/unemployment http://bizcovering.com/business-and-society/causes- of-unemployment/ http://www.guardian.co.uk/commentisfree/2010/jun/1 1/unemployment-perspectives-peoples-panel E campus