As I learned a few months ago, there are three factors of production. They are natural resources, capital resources, and human resources. From these resources, the one that interested me the most was human resources. More specifically, under the human resources category, I chose the sub topic, unemployment, as my theme for part II of this project. .
First of all, a definition of unemployment is a member of the labor force losing his or her job. There are several reasons why a person would lose their job. Some reasons are: the businesses are not always competitive, workers are not sufficiently mobile, there are poor research and development records among the industries and government policies for reducing unemployment are not effective. Beside the causes of unemployment, unemployment is also divided up into five main categories. They include hidden, cyclical, seasonal, structural, and frictional unemployment. The section I will be focusing on is cyclical unemployment. .
As I was researching about this section and searching for articles in the newspaper, I thought this type of unemployment was one of the most fearful and saddest from the other categories. There is an economical cycle. First the economy prospers and all demands increase but as the recession period arrives, everything turns into disaster. Companies cut back on employees, others employees are given notices, or then laid-off. Learning about this category created a spark inside of me and I decided to find articles.
This past year, the economy of Canada as well as other countries have been suffering. Events such as September 11, the war in Iraq and current issues such as SARS are creating problems for many industries. Air Canada, for example, recently warned workers that it needed to cut back. It already cut back 3, 600 workers but it says that they still need to lay-off more employees. People are scared to fly in planes. The spread of SARS and the instructions not to fly to specific cities have created massive problems for the Air Canada industries.