Unemployment, ever think about what happens to people when they loose their job? Where do they go? What do they do? How do they provide for their family? These are everyday facts about unemployment, one of the largest measuring sticks for an economy. Before you can answer any of these questions. We must determine what causes or influences unemployment? Government is the cause of unemployment. Government has a great deal of influence on unemployment. For instance, government increases minimum wage rates, which price out potential employees. Regulations that government issues affects unemployment. These regulations places high cost onto business that decrease their profits, which in return decrease their employees.
The presence of unemployment is a remarkable one. Our economy can not hide or run from unemployment. Unemployment affects everyone within an economy. One person unemployed may not seem to harm anybody, but a large number within an economy does cause a wave of concern. However not every economy is similar or affected by unemployment in the same way. Each economy has its own problems of unemployment. These problems arise from the different types of unemployment. Some nations are severely affected by seasonal unemployment, while others are prone to structural unemployment. In addition to the two mention previously, two other category of unemployment exist and they are frictional and cyclical unemployment. The severity of unemployment that affects an economy is disguised by misrepresentation of reported unemployment rates. .
What is unemployment? It depends on which party you ask. The political definition states that a person who does not have a job, but are willing and looking for one. The economist explains unemployment as a person who is not working and is looking for a job, but is only willing to work at the prevailing wage for what they do. The definitions presented above seem similar, but are apples and oranges in comparison.