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Unemployment by Mind Map: Unemployment
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Unemployment

Types

Frictional

Short term unemployment: people who are between jobs

Structural

This is caused by structural changes in demand for a good or service

Cyclical

People are not buying enough goods and services to employ the available workforce

Seasonal

This refers to unemployment that is due to changes in the season

Regional

This is unemployment that exists particularly in one area

Technological

This is largely due to the advance in technology, being able to replace to work of human labour

Impacts

Individuals

less purchasing power

No income

Lower demand for goods and services

Income effect

Substitution effect

Shoe-leather effect

Increase in demerit consumption

Poorer health

Producers

Increase in revenue

Lower demand for goods and services

Lower wages, increase in supply, decrease in cost and an increase in profit

Increase in capital

Loss of human capital investment

Government

Less direct and indirect tax

Public housing

Healthcae

Riots

Brain drain. people go abroad

Solutions

Fiscal

Subsidies for education

Subsidies for training programs

Transport subsidies

Job centers

More universities

Government subsidies to increase demand for workers

Monetary

Lower interest rate so people can borrow money easier

Increase money supply

Regulation

Rise in the school leaving age, more education so an increase in skills

Increase in the max working hours

Casestudies

Spain

21.2% unemployment

Hong Kong

3.2% unemployment

Zimbabwe

70% unemployment

Causes

Occupational immobility

the person does not have the skills required for the job despite having some level of qualificatoin or experience in another job

Geographical immobility

it is when the person with the tight skills cannot get the job because it is too far from their home and family commitments