During the temporary decline in prosperity in our economy, many are finding other ways to fight the unemployment attack. Many people are being shifted around from "salary positions to hourly clerical positions, paying them a different wage on each new assignment." Being flexible is one way to fight unemployment but it can have a down side also, because many have to take less pay and mostly skilled workers are placed in satisfying positions. Although the recession is disappearing, "unemployment remains at a relatively high 5.5%, and it is expected to stay around there at least through the rest of this year." (L66) .
There are three major types of Unemployment: frictional, structural and cyclical. Each has a different effect. Frictional unemployment is often in the form of people changing and searching for new jobs. This type of unemployment "does not last and is not considered a significant economic problem."(p.276) Structural unemployment is caused by changes in demand for certain kinds of labor. This type is seen often when large corporations convert to new technology. Last is the cyclical unemployment causes by economic fluctuations. (p.276) .
When Lincoln sold its electric-motor business they knew employees would be out of work, so they set up an agreement with the buyer to hire each employee with the same pay and benefits. Although they will not be performing the same job, it managed to keep them employed. Many people are waiting patiently by the phone to see if they will be called to work for that day. People that have worked in certain .
positions are finding there positions phased out and accepting pay cuts just to stay employed. Americans are feeling the drop in employment availability, but has managed to hang in there and do what they have to do to survive. .
"There is both economic and social effect of unemployment. The economic effect involves the waste and loss of goods and services when resources are unemployed.
