Unemployment is what occurs when a person is seeking employment while lacking a job. It occurs all over the world, in every economy and government. It has various effects which affect amny lives.

Unemployment itself can be broken down into four main different types. Firstly there is frictional unemployment which is always present in a economy. It is a short duration unemlpoyment. It is caused by many workers who do not go from one job immediatly to the next. They spend some time unemloyed, a few weeks. This unemployment can be up to eight weeks that a person is not working.

The there is also seasonal unemployment. It is caused by changes in demand for workers at different times of the year. For example in the building industry very few workers are emloyed during the wimter months.

Cyclical Unemployment occurs when workers and factories lie idle due to insufficient spending in the economy to make use of all the factors of production. When the resulting unemployment is cyclical then it is said that the economy is in recession.

The there is also structural unemloyment. It occurs when firms and/or industries are run down and no ne

Even though the largest problem is for the unemployed, their families and neighbours, those who work ( tax payers) face a burden as well. The government has to pay increased benefits. This is due to the money the government must give the unemployed. This money comes from the taxes workers themselves pay.Also government loses revenue because these workers(the ones that are presently unemployed) would have payed taxes if they were employed. They would have payed income tax and National Insurance contributions on their earnings. They also would have payed more in VAT and excise duties because they would have been able to spend more, since they would have a wage. Therefore tax payers have to make up for the economy´s loss, the taxes the unemployed would have payed the government and it´s increased spending.

Yet before explaining such a curve it is important to discuss equilibrium in the labour market. This equilibrium exits when the demand for and supply are equal. If supply exceeds demand then there is disequilibrium. In this case unemployment is cyclical. Even when the labour market is in equilibrium unemployment can still exist. In these cases unemployment is frictional, seasonal or structural.

Also the unemployed suffer psychologically, they feel they do not deserve anything, they are out of a job they feel rejected by society. Consumption of drugs and alcohol and suicide increases heavily among the unemployed. These people´s family suffer, this attittude can hurt anyone.

Some common words found in the essay are:
Phillip Curve, Cyclical Unemployment, National Insurance, , short run, aggregate demand, change money, price level, aggregate demand curve, unemployment occurs, demand curve, run short run, labour market equilibrium, unemployment cyclical, run aggregate, workers unemployed, violence streets, rates change money, money wage rates,
Approximate Word count = 1354
Approximate Pages = 5 (250 words per page double spaced)