How To Determine The Level Of Structural Unemployment

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How To Determine The Level Of Structural Unemployment
How To Determine The Level Of Structural Unemployment

Video: How To Determine The Level Of Structural Unemployment

Video: How To Determine The Level Of Structural Unemployment
Video: Structural Unemployment I A Level and IB Economics 2024, November
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Structural unemployment is due to structural changes in the economy. Most often this is due to the processes of modernization and innovation in various areas of the economy and agriculture. These processes make many obsolete specialties and professions unclaimed. At the same time, they generate a demand for workers in new specialties, which remains unsatisfied due to the lack of professional personnel.

How to determine the level of structural unemployment
How to determine the level of structural unemployment

Instructions

Step 1

Structural unemployment, along with frictional unemployment, is natural. Frictional unemployment is typical for people who have recently lost their jobs and are looking for a new job. As a rule, she refers to those specialists whose professions remain in demand on the labor market. Frictional unemployment is characterized by a short period of searching and waiting for a new job.

Step 2

The second natural component, structural unemployment, is characterized by a long period, since workers who remained unclaimed after the modernization of production are forced to undergo retraining and change their profession. And this is not always easy, both morally and materially. In addition, this type of unemployment includes the outflow and movement of labor from depressed areas, which also affects the timing of the search for a new job.

Step 3

To determine the level of structural unemployment, it is necessary to take statistics on the unemployed and analyze them. From the total number of the able-bodied population engaged in job search, it is necessary to select those of them whose professional structure does not correspond to the structure of vacancies existing on the labor market. So, in particular, this type of unemployment characterizes military specialists of working age who remained unclaimed due to the reduction of the armed forces. They have to retrain and acquire new, "peaceful" specialties. Determine the number of job seekers whose cases relate specifically to structural unemployment.

Step 4

The level of structural unemployment (SS) is determined by the formula: SS = (SB / RS) * 100%, where SB is the number of structural unemployed, RS is the labor force. The labor force includes all categories of the working age population who want to work, work or are looking for work.

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