Unemployment

unemployedunemployment ratejob creationjob creation programjoblessnesswork relief programcyclical unemploymentlabor force participation ratelong-term unemploymentmass unemployment
Unemployment or joblessness is the situation of actively looking for employment, but not being currently employed.wikipedia
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Recession

economic recessioneconomic downturndepression
During periods of recession, an economy usually experiences a relatively high unemployment rate.
Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.

Full employment

full-employmentemploymentEmployment for all
A third group of theories emphasize the need for a stable supply of capital and investment to maintain full employment.
Because people switch jobs, full employment means a stable rate of unemployment around 1 to 2 per cent of the total workforce, but does not allow for underemployment where part-time workers cannot find hours they need for a decent living.

John Maynard Keynes

KeynesKeynesianKeynes, John Maynard
Its namesake economist John Maynard Keynes, believed that the root cause of unemployment is the desire of investors to receive more money rather than produce more products, which is not possible without public bodies producing new money.
He argued that aggregate demand (total spending in the economy) determined the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of high unemployment.

Structural unemployment

skills gapstructuralmajor skills shortage
Some of the main types of unemployment include structural unemployment and frictional unemployment, as well as cyclical unemployment, involuntary unemployment, and classical unemployment.
Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).

Involuntary unemployment

involuntarily unemployedinvoluntaryunable to work
Some of the main types of unemployment include structural unemployment and frictional unemployment, as well as cyclical unemployment, involuntary unemployment, and classical unemployment.
Involuntary unemployment occurs when a person is willing to work at the prevailing wage yet is unemployed.

Frictional unemployment

search unemployment
Some of the main types of unemployment include structural unemployment and frictional unemployment, as well as cyclical unemployment, involuntary unemployment, and classical unemployment.
Frictional unemployment is the unemployment that results from time spent between jobs when a worker is searching for, or transitioning from one job to another.

Monetary policy

monetarymonetary policiesunconventional monetary policy
Another intervention involves an expansionary monetary policy that increases the supply of money which should reduce interest rates which should lead to an increase in non-governmental spending.
Further goals of a monetary policy are usually to contribute to the stability of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies.

Reserve army of labour

reserve army of laborindustrial reserve armyreserve army of the unemployed
The function of the proletariat within the capitalist system is to provide a "reserve army of labour" that creates downward pressure on wages.
It refers to the unemployed and underemployed in capitalist society.

NAIRU

non-accelerating inflation rate of unemploymentfull employmentNAIRU (non-accelerating inflation rate of unemployment)
An alternative technical term for this rate is the NAIRU, or the Non-Accelerating Inflation Rate of Unemployment.
NAIRU is an acronym for non-accelerating inflation rate of unemployment, and refers to a level of unemployment below which inflation rises.

Job hunting

job seekersjob searchjob applicants
Structural unemployment may also be encouraged to rise by persistent cyclical unemployment: if an economy suffers from long-lasting low aggregate demand, it means that many of the unemployed become disheartened, while their skills (including job-searching skills) become "rusty" and obsolete.
Job hunting, job seeking, or job searching is the act of looking for employment, due to unemployment, underemployment, discontent with a current position, or a desire for a better position.

Interest rate

interest ratesdiscount rateinterest
Another intervention involves an expansionary monetary policy that increases the supply of money which should reduce interest rates which should lead to an increase in non-governmental spending.
Interest rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.

Underemployment

underemployedbetter paying jobsdisguised
The statistic also does not count the "underemployed"—those working fewer hours than they would prefer or in a job that doesn't make good use of their capabilities.
All meanings involve a situation in which a person is working, unlike unemployment, where a person who is searching for work cannot find a job.

Beveridge curve

The frictions in the labour market are sometimes illustrated graphically with a Beveridge curve, a downward-sloping, convex curve that shows a correlation between the unemployment rate on one axis and the vacancy rate on the other.
A Beveridge curve, or UV curve, is a graphical representation of the relationship between unemployment and the job vacancy rate, the number of unfilled jobs expressed as a proportion of the labour force.

New classical macroeconomics

new classicalnew classical economicsnew classical school
Classical economics, new classical economics, and the Austrian School of economics argued that market mechanisms are reliable means of resolving unemployment.
Keynesian policy responses did not reduce unemployment, instead leading to a period of high inflation and stagnant economic growth—stagflation.

Natural rate of unemployment

natural ratenatural" rate of unemploymentfull employment
Some demand theory economists see the inflation barrier as corresponding to the natural rate of unemployment.
It represents the hypothetical unemployment rate consistent with aggregate production being at the "long-run" level.

Macroeconomics

macroeconomicmacroeconomistmacroeconomic policy
The unemployment rate is included in a number of major economic indexes including the United States' Conference Board's Index of Leading Indicators a macroeconomic measure of the state of the economy.
Macroeconomists study aggregated indicators such as GDP, unemployment rates, national income, price indices, and the interrelations among the different sectors of the economy to better understand how the whole economy functions.

Discouraged worker

discouraged from seeking workdiscourageddiscouraged workers
U4: U3 + "discouraged workers", or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
In economics, a discouraged worker is a person of legal employment age who is not actively seeking employment or who does not find employment after long-term unemployment.

Market clearing

market-clearingclearmarket clears
Classical, or real-wage unemployment, occurs when real wages for a job are set above the market-clearing level causing the number of job-seekers to exceed the number of vacancies.
If markets were supposed to clear, how could ruinously high rates of unemployment persist for so many painful years?

Homelessness

homelesshomeless peoplebag lady
Problems with debt may lead to homelessness and a fall into the vicious circle of poverty.
Poverty, caused by many factors including unemployment and underemployment

Okun's law

As indicated by Okun's Law, the demand side must grow sufficiently quickly to absorb not only the growing labour force but also the workers made redundant by increased labour productivity.
In economics, Okun's law (named after Arthur Melvin Okun, who proposed the relationship in 1962 ) is an empirically observed relationship between unemployment and losses in a country's production.

Employment

employeeemployeremployees
Unemployment or joblessness is the situation of actively looking for employment, but not being currently employed.
This study showed that other sectors were just as important in reducing unemployment, such as manufacturing.

Capital accumulation

accumulation of capitalaccumulationaccumulated capital
Marxists share the Keynesian viewpoint of the relationship between economic demand and employment, but with the caveat that the market system's propensity to slash wages and reduce labor participation on an enterprise level causes a requisite decrease in aggregate demand in the economy as a whole, causing crises of unemployment and periods of low economic activity before the capital accumulation (investment) phase of economic growth can continue.
This depresses the wage bill, leading to stagnant wages and high rates of unemployment for the working class while excess profits search for new profitable investment opportunities.

Labour economics

laborlabor marketlabour market
The frictions in the labour market are sometimes illustrated graphically with a Beveridge curve, a downward-sloping, convex curve that shows a correlation between the unemployment rate on one axis and the vacancy rate on the other.
The unemployment level is defined as the labour force minus the number of people currently employed.

Youth unemployment

unemployedunemploymentunemployment of youth
The youth unemployment ratios in the European Union range from 5.2 (Austria) to 20.6 percent (Spain).
Youth unemployment is the unemployment of young people, defined by the United Nations as 15–24 years old.

Path dependence

path dependentpath dependencypath-dependent
This theory of persistence in structural unemployment has been referred to as an example of path dependence or "hysteresis".
A transitory high rate of unemployment during a recession can lead to a permanently higher unemployment rate because of the skills loss (or skill obsolescence) by the unemployed, along with a deterioration of work attitudes. In other words, cyclical unemployment may generate structural unemployment. This structural hysteresis model of the labour market differs from the prediction of a "natural" unemployment rate or NAIRU, around which 'cyclical' unemployment is said to move without influencing the "natural" rate itself.