Unemployment
No single economic statistic attracts more notice or implies more about the well being of the social system than does the unemployment rate. The moral and economic waste brought on by recurring waves of unemployment has always been one of the principal reproaches directed at the capitalist system by its critics. In their pursuit of profits and their attempts to avoid losses, private sector companies discharge workers permanently or temporarily for various reasons. Previously, to be without work was to be involuntarily idle, and unemployment tended to be seen as an individual matter rather than a social concern beyond the will of the persons involved. To be without work was more of leisure than what we would call unemployment today. Mass unemployment gradually came largely due to the pursuit of economic self-interest and an extensive division of labor. Apart from unemployment that is the result of an inadequate level of aggregate demand, important categories are frictional, structural, and seasonal unemployment. Frictional unemployment is the unemployment that corresponds to job vacancies in the same occupations and locations. Some workers will be frictionally unemployed because of job search. Workers will try to better them
It is argued that the Free trade Agreement of the 90's has effected the Canadian economy much like the introduction of the electronic computer in the 60's, and the energy crisis of the 80's. Some believe that free trade has produced a permanent loss of jobs, while others claim that high unemployment is a fixture in our economy because of an excessively generous welfare state. We cannot disagree that structural changes, like free trade, computers, and the energy crisis, did not play a role in creating unemployment, however the real issue is how to reduce it. The jobs needed will only be created if the economy grows fast enough to absorb the unemployed and create new jobs. The government has ignored economic growth. Instead of trying to reduce unemployment, the government has been focused on eliminating inflation by boosting interest rates. High interest rates restrain growth in the economy, and subsequently cause more unemployment. Structural unemployment arises from an imbalance between the kinds of workers wanted by employers and the kind of workers looking for jobs. The imbalances may be caused by inadequacy in skills, location, or personal characteristics. Technological developments, for example, necessitate new skills in many industries, leaving those workers who have outdated skills without a job. A plant in a declining industry may close down or move to another area, throwing out of work those employees who are unable or unwilling to move. Workers with inadequate education or training, and young workers with little or no experience, may not be able to get jobs; Employers believe that these employees would not produce enough to be worth paying the legal minimum wage or the rate agreed on with the union. On the other hand, even highly skilled workers can find themselves unemployed. When there is a mismatch between people, skills, and location, the obvious remedies are things that involve job skills training and a rise in information about job vacancies and labor market alternatives. There are two other types of unemployment. First, there is the hard core unemployable. This list includes those that are unemployed due to disabilities, work attitude, drug abuse, and alcoholism. The second category is those who are unemployed because of the availability of unemployment insurance. Unemployment Insurance is one of the best-known public service programs in Canada. Unemployment Insurance has changed in response to the growing place of women in the labor market, human rights considerations, and the need for workers to move, not just from job to job, but from industry to industry and community to community. Unemployment Insurance has often attracted controversy because it presents basic questions about the roles of the government and the private sector. Despite all the controversies, Unemployment Insurance has been successful in its fundamental goal, which is to provide income support for people who are temporarily without work. All employed people pay UI premiums out of every paycheck. Beneficiaries receive certain cash benefits when they fall victim to a certain risk. The risk in this case is the "temporary, involuntary interruption of earning from employment." A person has to have earned an income through employment for some time before the income can be considered to have been interrupted. Canada has some of the most liberal unemployment insurance benefits in the world. Although unemployment in
Some common words found in the essay are:
, Governments Western, Development Canada, Unemployment Insurance, Insurance Act, unemployment insurance, labor market, frictional unemployment, labor force, seasonal unemployment, aggregate demand, create jobs, structural unemployment, unemployment occupation, unemployment unemployment, demand deficient unemployment, unemployment level unemployment, unemployment cyclical unemployment, life millions people, size labor force,
Approximate Word count = 2314
Approximate Pages = 9 (250 words per page double spaced)
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