Unemployment, therefore, leads to a lack of a source of income, thus affecting the economic condition of the society. Unemployment takes different forms and shapes (Harris, 2001). The condition of unemployment differs from society to society, depending on the factors responsible for the situation.
Several factors affect unemployment, including: the economy, a person’s skills, the jobs available, and loss of jobs. The unemployment rate is Peru has started to decrease in the past decade. This has several direct relationships to the economic stability of Peru, and the data suggests this is an ongoing trend.
When there is an economic growth, cyclical unemployment reduces. Structural unemployment is another cause that creates unemployment. As time goes on, consumer's demand changes, which causes a growth in one industry, a decrease in another or it may lead to a complete shut down of a industry.
While things seem to be looking up for the economy with lower gas prices and grocery bills are decreasing, unemployment still seems the plague the country. Only 63 percent of working-age Americans have a job or are actively looking for one -- the lowest share of the population participating in the labor force since 1978.
Frictional unemployment. Frictional unemployment is transitional unemployment due to people moving between jobs e.g. new entrants to the labour market. There are always hundreds of thousands of job vacancies in modern economies such as the UK, so a degree of frictional unemployment is both unavoidable and (to an extent) desirable so that jab vacancies can be filled.
Unemployment that is attributed to economic contraction is called cyclical unemployment. The economy has the capacity to create jobs which increases economic growth. When the economy is in recession, firm will reduce production and it lead to the decline of labor demand. Thus, cyclical unemployment will rise sharply during recession.
Psychological Effects of Unemployment and Underemployment The current state of the economy continues to be an enormous stressor for Americans, with 78 percent reporting money as a significant source of stress (APA, 2009).
Perhaps we have a larger army of the unemployed young men than the actual army of the country. Generally, the graph of unemployment keeps on changing according to the industrial and economic development of a country. “If any body would not work, neither he should eat.” New Testament. Unemployment is obviously the root of many evils and crimes.