Joblessness not only affects the unemployed. It shakes people with jobs, too. To help you grasp the whole idea, explore below the unemployment factors that cause these problems.
Unemployment Factors in the United States
Unemployment occurs when job seekers are unable to find work. Experts measure it by dividing the number of the unemployed by the total workforce. The following unemployment factors affect not only the jobless but also people with work.
Types of Unemployment
1. Frictional – is the period of shifting between two jobs. A transitional type occurs when a person is jobless and looking for another job.
2. Structural – occurs due to the structural changes in the economy worsened by technology, competition, and government policy. This happens when the workers’ skills could not match the skills demanded by the employers or when the workers live far from the places where jobs are available.
3. Classical – is the real wage or imbalanced unemployment. It occurs when trade unions and labor groups bargain for higher wages that lead to a drop in labor demand.
4. Cyclical – occurs when a country is under recession. During an economic downturn, the aggregate demand for goods and services shrinks and demand for labor decreases.
The Main Causes of Unemployment
- Industrial changes
- Changes in tastes and climatic conditions
- Attitude towards employers
- Willingness to work
- Employee’s perception and experience
- Employee values
- Discrimination at work
- Ability to seek job
Effects of Unemployment to the Employed
High jobless rate attracts fierce job competition that often comes with lower wages and tougher work conditions. Manufacturing, food service, or seasonal sectors are at risk but white-collar workers need to pay attention, too.
Length of Unemployment
Based on statistics, people could be jobless on an average of 34.2 weeks or eight months. Thus, employees with unstable status due to mass layoffs must save more money to cover the expenses. They must keep their resumes and contacts updated to prepare for the worst and survive sudden job loss.
Level of Pay
Unemployment factors can also affect the workforce’s pay and benefits. With high jobless rate and laid-off staffs, the remaining workers need to pick up the slack. They must work harder for longer hours without an increase. It may be difficult to find the drive but the fear of not having a steady income may force them to step up and work harder than before.
Teens working for summer and hourly jobs have higher jobless rate compared to the overall ratio across the country. This makes job search more difficult for them than any field in the market. If you are among these affected teens and students, stand out from the crowd by looking sharp. Nurture your skills and polish your resume. Apply early and arrive on time during an interview to impress your future employer.
The stats can affect your life greatly, whether you are jobless or employed. Hence, always prepare for the worst and exert more effort to better your job. If you are out of work, accept that job search may take a while. Keep yourself abreast of the unemployment factors, stats, the field’s job market, and the firm’s current condition to endure the trying economic times.
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