EMPLOYMENT

LACK OF EMPLOYMENT

The term unemployment refers to the lack of work. An unemployed person is that subject who is part of the active population (he / she is of working age) and who seeks employment without success. This situation translates into the inability to work despite the person's will.You can differentiate between four major types of unemployment:

 cyclic:

Cyclical unemployment is the lack of work during a time of economic crisis (ie recession). In general, these are periods that are not too long in time and that are reversed together with the reactivation of the economy.

seasonal:

Seasonal unemployment arises due to the seasonal fluctuation of supply and demand. The sector of agriculture offers a clear example of this type of unemployment: in times of harvest, the supply of labor increases and unemployment tends to disappear; in the rest of the year, the reverse situation occurs.

frictional:

Frictional unemployment takes place due to the lack of agreement between the employee and the employer. The characteristics of a job do not satisfy the worker and he leaves a job in search of another. It is a temporary unemployment and that is usually constant.

structural:

Structural unemployment, finally, is the most serious since it implies a technical imbalance between the supply and demand of workers. The jobs that an economy requires are less than the number of people who need work. This situation demands the intervention of the State to solve the imbalance.

Unemployment is the consequence of a series of wrong legislations. Which caused that the employers, that in their beginnings felt extremely enthusiastic, have lost that illusion and, discouraged, have diminished their interests of production. The labor market of a society is managed based on growth. If you increase the number of postulates for a given position, you must also create new jobs. And, for this to be done, the economy is required to grow at the same rate as the number of people seeking employment. It is a circle that is nourished by its different components. If one of these fails, there is a phase shift that results in an excess of employment or unemployment: people who are unable to aspire to a job because the market has stalled.
In most countries there are plans to help those who have been victims of unemployment; because in the place where they worked they have reduced the workforce or because they have been left out of the market due to certain circumstances. These financial aid is calculated based on what those people have invoiced during their active period. In any case, it is necessary to point out that they are not intended for the people who need it most, since to access them it is necessary to fulfill a series of conditions. Therefore, even at this point it would not be valuable.

The crisis around employment is particularly serious this time around not only because 205 million people around the world are officially unemployed, nor because there is often a decline in the quality of jobs available, particularly for graduate workers. medium that occupy office jobs in developed countries, or because there are few qualified and talented people who earn multiples of the average salary.
The problem in today's post-crisis world is that policy makers and professionals everywhere are no longer sure how to create jobs, and what is equally important and perhaps even more important, how to create good jobs.
Before, it was usual for the reactivation of economic growth to solve the problem.
Historically, unemployment returns to pre-crisis rates with a lag after the recovery of the production growth trend.

On this occasion, although the main macroeconomic indicators, such as the real world gross domestic product (GDP), private consumption, gross fixed investment and world trade, recovered and even surpassed the levels prior to the 2010 crisis, the of unemployment did not follow suit.

The crisis around employment is particularly serious this time around not only because 205 million people around the world are officially unemployed, nor because there is often a decline in the quality of jobs available, particularly for graduate workers. medium that occupy office jobs in developed countries, or because there are few qualified and talented people who earn multiples of the average salary.
The problem in today's post-crisis world is that policy makers and professionals everywhere are no longer sure how to create jobs, and what is equally important and perhaps even more important, how to create good jobs.
Before, it was usual for the reactivation of economic growth to solve the problem.
Historically, unemployment returns to pre-crisis rates with a lag after the recovery of the production growth trend.
On this occasion, although the main macroeconomic indicators, such as the real world gross domestic product (GDP), private consumption, gross fixed investment and world trade, recovered and even surpassed the levels prior to the 2010 crisis, the of unemployment did not follow suit.

Structural unemployment?

According to the ILO, the world unemployment rate fell from 6.3% in 2009 to 6.2% in 2010, but still far exceeded the rate of 5.6% in 2007.

Image result for EMPLOYMENT NON-Renown Economists, Edmund Phelps and Michael Spence pointed out that what we are observing in the United States and other rich countries is structural unemployment, rather than transient cyclical unemployment.

Globalization and technological innovation, together with the consequent subcontracting and foreignization, are causing long-term changes in the world economy that alter the structures of national labor markets.

The skills that were demanded in the past were replaced by technology or transferred to developing countries.

Create jobs with what you have

And as if things were not bad enough, the employment crisis in developed countries has been exacerbated by the sovereign debt crisis.

With interest rates at historic lows and most Western governments having reached their "credit limit", few still have the capacity for more stimulus, either through monetary or fiscal policy.

Ironically, developed countries must now figure out how to create jobs and at the same time live within their means, something that many developing countries achieved successfully for decades.

High youth unemployment

In the case of developing countries, the situation is different but similar at the same time. For example, a number of countries in the Middle East experienced high rates of economic growth during the last decade but unemployment rates remain at an average of 10% or so, indicating again a structural phenomenon.
Youth unemployment, although disproportionately high in most regions of the world, is especially prevalent in the Middle East and North Africa (MENA), whose rates are close to 25%, more than four times higher than those of adults.
Result of image for EMPLOYEE LACK The production of university graduates with knowledge of industrial interest is also an important issue in the region.
As a current and fundamental development issue, job creation has become one of the key topics of debate at the 2011 Annual Meetings of the World Bank and the IMF.
Several events focused on employment, including a Debate on global development: Jobs and opportunities for all.
This high level event brought together policy makers and experts from emerging countries who exchanged their perspectives on this issue of enormous importance from their respective positions.