Understanding the 4 Basic Types of Unemployment

Understanding the 4 Basic Types of Unemployment If youve ever been laid off, then youve experienced one of the types of unemployment  that economists measure. These categories are used to gauge the health of an economy - be it local, national, or international - by looking at how many people are in the workforce. Economists use this data to help governments and businesses navigate economic change. Understanding Unemployment In basic economics, employment is tied to wages. If you are employed, that means youre willing to work for the prevailing wage being offered to do the job youre doing. If you are unemployed, that means you are unable or unwilling to do that same job. There are two ways of being unemployed, according to economists. Voluntary unemployment occurs when a person is jobless by choice, rather than due to a lack of employment opportunities. Quitting your job because you just won the lottery and no longer need a steady paycheck is one example of voluntary unemployment.Involuntary unemployment occurs when a person is willing and able to work for a given wage but cannot find a job. Corporate layoffs following a merger or a downturn in the economy are two examples of involuntary unemployment.   Economists are chiefly interested in involuntary unemployment because it helps them gauge the overall job market. They divide involuntary unemployment into three categories. Frictional Unemployment Frictional unemployment is the time a worker spends between jobs. Examples of this include a freelance developer whose contract has ended without another gig waiting, a recent college grad seeking his or her first job, or a mother returning to the workforce after raising a family. In each of these instances, it will take time and resources (friction) for that person to find a new job. Although frictional unemployment is generally considered short-term, it may not be that brief. This is especially true for people new to the workforce who lack recent experience or professional connections. In general, however, economists regard this kind of unemployment as a sign of a healthy jobs market as long as its low. A low frictional unemployment rate means people seeking work are having a fairly easy time finding it. Cyclical Unemployment Cyclical unemployment  occurs during downturns in the  business cycle when demand for goods and services declines and companies respond by cutting production and laying off workers. When this happens, there are more workers than there are available jobs. Unemployment is the inevitable result. Economists use this to gauge the health of an entire economy or large sectors of one. Cyclical unemployment may be short-term, lasting mere weeks for some people, or long-term. It all depends on the degree of the economic downturn and what industries are most affected.  Economists usually focus on addressing the root causes of the economic downturns, rather than correcting cyclical unemployment itself. Structural Unemployment Structural unemployment is the most serious kind of unemployment because it points to seismic changes in an economy. It occurs when a person is ready and willing to work, but cannot find employment because none is available or they lack the skills to be hired for the jobs that do exist. Oftentimes, these people may be jobless for months or years and may drop out of the workforce entirely. This kind of unemployment may be caused by automation that eliminates a job held by a person, such as when a welder on an assembly line is replaced by a robot. It may also be caused by the collapse or decline of an important industry due to globalization  as jobs are shipped overseas in pursuit of lower labor costs. In the 1960s, for example, about 98 percent of shoes sold in the U.S. were American-made. Today, that figure is closer to ten percent. Seasonal Unemployment Seasonal unemployment occurs when the demand for workers varies over the course of the year. It can be thought of as a form of structural unemployment because the skills of the seasonal employees are not needed in certain labor markets for at least some part of the year. The construction market in northern climates depends on the season in a way it doesnt in warmer climates, for example. Seasonal unemployment is viewed as less problematic than regular structural unemployment, mainly because the demand for seasonal skills hasnt gone away forever and resurfaces in a fairly predictable pattern.

Useful Vocabulary for a Job Interviews and Résumés

Useful Vocabulary for a Job Interviews and Rà ©sumà ©s During the job interviewing process its important to use verbs that precisely describe your duties and responsibilities at your present and past positions. The following list provides verbs that are both precise and commonly used in an English-speaking workplace. These verbs are used to express responsibilities and tasks performed throughout an applicants professional career.   Great Action Words  for Your Rà ©sumà © A Verb Example Sentence accomplished I've accomplished a lot in my current position. acted She's acted as head of the department. adapted I adapt to team working situations easily. administered I administered four committees. advanced I've advanced many new ideas. advised I advised management on purchasing decisions. allocated I allocated resources on a weekly basis. analyzed I analyzed financial data. applied I applied my knowledge to workflow. approved I approved new products for manufacturing. arbitrated I arbitrated for Fortune 500 companies. arranged I arranged meetings. assisted I assisted the CEO. attained I attained the highest level of certification. B-C Verb Example Sentence blended I blended traditional approaches with new insights. brought I brought a team player sensibility to the job. built We built more than 200 homes. carried out I carried out a wide range of duties. cataloged I cataloged our company's library. collaborated I've collaborated with more than fifty clients. completed I completed the highest level of the training. conceived I've conceived of numerous products. conducted I conducted telephone surveys. constructed I constructed prototypes for marketing. consulted I've consulted on a wide range of issues. contracted I've contracted with large and small businesses. controlled I controlled more than $40,000,000. cooperated I cooperated successfully on more than team projects. coordinated I coordinated between sales and marketing departments. corrected I edited and corrected company brochures. counseled I counseled clients on insurance policies. created I created more than twenty advertising campaigns. D-E Verb Example Sentence dealt I've dealt with a wide variety of issues. decided I've decided I need to further my career. decreased I decreased spending while improving profits. delegated I've delegated tasks on a number of projects. detected I detected a number of mistakes. developed I developed an invention. devised I devised a plan to improve profits. directed I directed the sales department. discovered I discovered the reason. distributed We distributed throughout the country. documented I documented company policies. doubled We doubled profits in only two years. edited I edited company communications. encouraged We encouraged research and development. engineered I engineered a wide range of applications. enlarged I enlarged our community outreach. escalated We escalated the problems to the director. established I established company guidelines. estimated I estimated future costs. evaluated I evaluated investment opportunities. examined I examined sites for pollution. expanded I expanded our sales to Canada. experienced We experienced difficulties meeting the deadline. explored We explored a wide range of possibilities. F-L Verb Example Sentence facilitated I facilitated an exchange of ideas between the companies. finalized I finalized projections for the year. formulated I formulated answers to the questions. founded I've founded two companies. functioned I functioned as a liaison between management and employees. guided I guided operations through the process. handled I handled customer complaints. headed I headed an exploratory committee. identified I identified issues and reported back to management. implemented I implemented company plans. improved I improved the feedback process. increased We increased sales by over 50%. initiated I initiated investments into the latest technology. inspected We inspected more than two hundred companies. installed I installed air-conditioning units. introduced We introduced innovate products. invented The company invented double-sided tape. investigated I investigated customer complaints. led I led the sales department to its best year. M-P Verb Example Sentence maintained I maintained the company database. managed I've managed more than five hundred employees. moderated I moderated negotiations between the two companies. negotiated I negotiated a better deal for the company. operated I've operated heavy machinery. organized I've organized many projects. performed I performed as company clerk. pioneered We pioneered new sound technologies. planned I planned company retreats. prepared I prepared documents for management. presented I presented at many conferences. programmed I programmed the company database. promoted I promoted employees in human resources. provided We provided feedback to management. purchased I purchased materials for the company. R-Z Verb Example Sentence recommended I recommended cutbacks at the company. recorded I recorded notes during meetings. recruited We recruited the best talent. redesigned I redesigned company workflow. repaired I repaired watches for a few years. replaced I replaced the director after only six months. restored I restored the company to profitability. reversed We reversed the trend and grew. reviewed I reviewed company documents and made recommendations. revised I revised figures at the end of each quarter. screened I screened applicants during job interviews. selected I selected employees and assigned tasks. serviced We serviced all the buses in the area. set up I set up four branches. stimulated I stimulated discussion between departments. strengthened We strengthened sales abroad. summarized I summarized complex ideas so everyone could understand. supervised I supervised two teams on the project. supported I supported management with research. tested I tested a number of devices in the field. trained I trained employees. transformed We transformed the company in a short time. upgraded We upgraded our IT infrastructure. validated I validated customer claims. Use these verbs to really sell yourself. You only have a few minutes to show how good you really are. Using this precise vocabulary and being confident can help you make the best impression possible.