What is Unemployment
What is Unemployment?
Everyman's dictionary of economics define unemployment as "involuntary idleness of a person willing to work at the prevailing rate of pay but unable to find it"
Causes/Types of Unemployment
1. Frictional
2. Seasonal
3. Cyclical
4. Structural
5. Technological
6. Disguised
*Frictional Unemployment occurs when workers leave their old jobs but haven't yet found new ones or students looking for that first job .
*Seasonal Unemployment results from regular changes in the season. Workers affected by seasonal unemployment include ice cream sellers...etc
*Cyclical unemployment is when the demand for goods and services in an economy decreases, forcing companies to lay off workers in an effort to cut costs.
*Structural unemployment is a type of long-term unemployment that can last for many years. Structural unemployment can have multiple causes, such as workers not having the skills or training needed to qualify for the current job openings.
*Technological unemployment is the loss of jobs caused by technological change.
*Disguised unemployment is unemployment that does not affect aggregate economic output . It occurs when productivity is low and too many workers are filling too few jobs. It can refer to any part of the population that is not employed at full capacity.
Causes of Unemployment in Nigeria.
An empirical research carried out by Nwanguma et al. (2012) on the causes of unemployment in Nigeria as presented in the table below shows the respondents views as regards the causes of unemployment in the Country.
*Rural-urban Migration 11.1%
*Rapid Population Growth 7.4%
*Corruption 18.5 %
*Outdated School Curriculum 7.4 %
*Leadership/Managerial Problem 25.9%
* Poverty 7.4%
* Lack of employable skills 3%
* Increase in the supply of educated manpower 4.4%
* Lack of adequate youth development programs 15%
Source: Nwanguma et al. (2012)
What is Full employment?
According to Keynes, full employment is a situation in which everybody who wants to work gets work.
How to Achieve Full Employment.
Since underemployment is caused by deficiency in effective demand, full employment can be achieved by increasing effective demand either by stimulating investment or consumption, or both.
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