Unemployment is the most important macroeconomic indicator that directly affects the rate of economic growth. At the same time, the majority of citizens misunderstand the meaning of this term, meaning by it the entire totality of the non-working population. Let's consider what unemployment is from the point of view of economic theory.
First, it is necessary to consider such an important macroeconomic indicator as employment. This term refers to the number of people over 16 years of age who have a job. Hence the definition of unemployment. Unemployment is the number of people over 16 who do not have a job, but are actively looking for it. The last caveat is very important, because if a person can work, but does not make any effort to this, he will not be unemployed. The totality of the unemployed and employed in economic theory is called labor.
The main indicator of unemployment in a country is the unemployment rate. You can calculate it as follows. The number of unemployed must be divided by the size of the labor force and then multiplied by 100%.
The following types of unemployment are distinguished:
- Structural is a type of unemployment that is directly related to technological progress in production, which changes the structure of labor demand;
- Frictional - a type of unemployment associated with the time spent on finding a new job. On average, lasts 1-3 months;
- Seasonal - unemployment due to seasonal demand for certain services. For example, on costumed Santa Clauses;
- Institutional - this type of unemployment is directly dependent on the level of dissemination of information and the availability of new jobs;
- Cyclical - unemployment, the level of which changes along with the economic recovery or recession. The main reason: a decrease in real GDP, as well as the release of part of the labor force.
