Unemployment

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Unemployment by Mind Map: Unemployment

1. Types

1.1. Frictional

1.1.1. Short term unemployment: people who are between jobs

1.2. Structural

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

1.3. Cyclical

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

1.4. Seasonal

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

1.5. Regional

1.5.1. This is unemployment that exists particularly in one area

1.6. Technological

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

2. Impacts

2.1. Individuals

2.1.1. less purchasing power

2.1.2. No income

2.1.3. Lower demand for goods and services

2.1.4. Income effect

2.1.5. Substitution effect

2.1.6. Shoe-leather effect

2.1.7. Increase in demerit consumption

2.1.8. Poorer health

2.2. Producers

2.2.1. Increase in revenue

2.2.2. Lower demand for goods and services

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

2.2.4. Increase in capital

2.2.5. Loss of human capital investment

2.3. Government

2.3.1. Less direct and indirect tax

2.3.2. Public housing

2.3.3. Healthcae

2.3.4. Riots

2.3.5. Brain drain. people go abroad

3. Solutions

3.1. Fiscal

3.1.1. Subsidies for education

3.1.2. Subsidies for training programs

3.1.3. Transport subsidies

3.1.4. Job centers

3.1.5. More universities

3.1.6. Government subsidies to increase demand for workers

3.2. Monetary

3.2.1. Lower interest rate so people can borrow money easier

3.2.2. Increase money supply

3.3. Regulation

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

3.3.2. Increase in the max working hours

4. Casestudies

4.1. Spain

4.1.1. 21.2% unemployment

4.2. Hong Kong

4.2.1. 3.2% unemployment

4.3. Zimbabwe

4.3.1. 70% unemployment

5. Causes

5.1. Occupational immobility

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

5.2. Geographical immobility

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