Unemployment and its Remedies

Unemployment is the common problem of all the countries which are thickly populated because when the population crosses the reasonable limit, it becomes burden on the country's resources. The available employment opportunities lags behind their demand. If population is in excess, the supply of labor would also be higher due to which general wage rates fall down and so the libing standard of the people deteriorates. Apart from it, if the density of population is lesser that requirements, the resources of the countries remain idle which is nothing but the waste of resources.

Cyclical Unemployment

As the word suggest, cyclical unemployment is due to changes in the business cycles. In expansion, cyclical unemployment is zero or close. In recession, there are more people unemployed. The rate of cyclical unemployment depends upon the fluctuations in the business cycle.

Structural Unemployment

As the structure of economy changes, the types of jobs also changes. Some jobs are created and some jobs are destroyed. For example, if a country's economy changes from agriculture to industry, more jobs are created in the industrial sector and fewer jobs are created in the agricultural sector. Therefore, those who can change and adopt and learn new skills remain employed and other become unemployed.

Frictional Unemployment

This type of unemployment arise because there are always some new people entering and leaving the labor force. Some new businesses start their operations and few old ones shutdown. Some people have found a job, but they are still waiting and searching to find a higher paid job. When people are unemployed due the reason mentioned above, they are said to be fictionally