Discuss the Types of Unemployment and the Benefits of Controlling It In the UK Essay

Unemployment is the effect of pack out of c each(prenominal) on who argon actively pursuance employment at the veritable employ rates. To be actively seeking exit you must be of becomeing(a) age 16-64 for males and 16-59 for females and non stintingally inactive. That elbow room you pile non be in extensive time education, be on a training scheme, excite retired primeval or be raising children at home. To billhook unemployment in the UK the government activity uses two methods to quantify the rate. The number 1 is the Labour Force Survey, in a periodical survey of a sample of households representing the entire population. The surveys be ground on the activities of each person of working age in the households, inside a unmatchable week period.A person who did any work during that week for pay or profit, worked 15 hours or more as an unpaid worker in a family business, or had a job from which he or she was temporarily absent, is counted as employed. A person who was not working precisely was looking for work or was on a temporary lay-off and operational to take a job is counted as unemployed. The co lam is the claimant count, where the governments collect figures on the number of sight claiming unemployment benefits from the DSS. This second method often gives lower values as they is liable(predicate) to be many people who do not except the benefits, purely on head or be perform they do not conduct the sp ar cash. in that respect atomic number 18 five main types of unemployment which all affect the miserliness in opposite ways. These are cyclical or requirement deficient unemployment, frictional unemployment, seasonal unemployment and structural unemployment.The first of these, cyclical or requirement deficient unemployment is based around what pass on happen to ask in a recession. When the parsimoniousness goes into a recession there is a fig up in unemployment as there is insufficient demand within the delivery. This i s really only a gip term cause to unemployment, because when in recession the saving is in disequilibrium. However macro economical forces allow work to restore the sparing to its enormous run equilibrium, until now in the short run there give be unemployment.In a recession the demand curve leave al single break left to D2. With the salary rate remaining constant at W in the short term there will be unemployment of GE created. In response macroeconomic forces will cause one of two changes. each the economy will move out of recession, cause the demand curve to shift right and okay to the equilibrium point of W , E. Else if the economy corset in recession the forces will cause the wage rate to drop to Y and cause the number of workers employed to rise to F. However as the economy moves out of recession the demand curve will shift right, causing the economy to move second towards its equilibrium at W , E.The second types of unemployment, frictional unemployment is the t erm used to define workers who have recently lost a job and are in short term unemployment until they find further employment. There is always turnover of labour in a free market, so frictional unemployment is not regarded as a major problem.Seasonal unemployment is when workers work within an exertion that only requires them to be employed at certain times of the year. For eccentric in the tourist industry workers tend to work in the summer, barely are then laid off in autumn months before taking up their jobs over again the next spring. There is very little that can be done to prevent seasonal unemployment in a market where the demand for labour varies throughout the year.Structural unemployment is when the demand for labour is slight than the hang on in an individual labour market. There are three main examples of this. Regional unemployment, where different areas of the landed estate have different rates of unemployment and because of a overlook of factor mobility, labo ur is not able to freely move between regions and balance unemployment.Sectoral unemployment is when workers from one industry are unable to adapt to a different industry, therefore not being able to cost the changes in demand. Finally if technological unemployment, where technology advances and replaces manual(a) labour, therefore without retraining workers would not have the skills to operate these machines and therefore would not be suitable for the demand of labour.Controlling the rate of unemployment in the UK is going to be a key element in the slaying of the UK economy. The rate of unemployment is directly related to real GDP. So in both(prenominal) the short run and the massive run if the economy is to grow then unemployment about be controlled. The rate of unemployment will also localise the kind of policy the government will have in place to boost the economy, although this is also based on the type of government in power. The current labour government are Keynesian economists and cogitate that in the long run there whitethorn be mass unemployment. They also use pecuniary policy, which is a demand side policy.So their economic goals will depend a lot on the long term unemployment levels that are predicted. If the government are predicting a period of sustained unemployment they are likely to be aiming at lowering inflation. Whereas if they predict full employment they can aim for increased GDP. Because of the specify of the long run aggregate supply curve, both these goals can be achieved without altering any some other elements of the economy.To lower inflation the demand function would need to be shifted left. This could be achieved by an increase in the National Insurance contributions of workers. This would cause more of peoples income being taken in receipts leaving them with less(prenominal) notes to spend on wide-cuts and services, which would cause a decrease in the come demand in the economy. To help increase economic growth t he total demand in the economy would need to be increased. This would need a shift left in the demand function, which could be caused by a fall in interest rates. This would cause more people to borrow money and less to save, leaving more money in the economy which will increase the demand for goods and services.If unemployment can be kept low then the costs of unemployment are minimised as well. Not only do the government have to spend less on unemployment benefits but also have less trouble with discourtesy and vandalism, which will also save them valuable money. also everyone will have more money to spend, not only the old unemployed, but also previous taxpayers as the government will require less money from them. This will increase total money in the economy and cause the aggregate demand to shift right, which will cause the growth of the economy to increase.So sustainable unemployment is good for the economy as it enables the government to set goals and work towards them aro und the long term predictions for unemployment rates. This is only an option if unemployment is kept in a boundary. Else if it is too fluctuated then it is hard to infer what the government will need to do from one day to the next.However arbitrary unemployment may not always be a good thing. For example because unemployment is directly related to economic growth, if you are controlling unemployment then you are also controlling economic growth. This will not be a good thing as the economy is at its well-nigh efficient when economic growth is climbing at a rate constant to the economy, not controlled by the government.