Unemployment within the labour market is primarily voluntary. Discuss - Essay Example

ves mismatches between the demand and supply of laborers with the necessary skill set; it is encouraged by the disruptive technologies and the globalization. The classical and neoclassical economics focuses more on how rigid the labor market entails from the outside, for instance, minimum wage laws, unionization, taxes, and other policies that may put off the hiring of workers. People take unemployment as mostly bad because of voluntary choices by the unemployed and the period it takes to get a new work.

Unemployment can come as a result of efficiency wages and sticky wages. Measuring unemployment is different depending on the country; they experience different levels of unemployment. Voluntary unemployment attributes to the personal decisions. Keynes theory argues that the neo-classical economic theory was not applicable during the recession because of private sector apprehension and over saving. Consequently people were thrown out of job involuntary and cannot get another acceptance for employment opportunity (Arestis 2002, p, 174).

The neoclassical and Keynesian theories conflict has had a strong influence on the government policy. The purpose of the government is to eliminate and restrain unemployment through an increase in the government jobs and benefits. Government should take the step of encouraging the job seeker to both consider relocation to a new town and new careers. Involuntary unemployment does not exist in developing societies but urban cities such as India or Pakistan and mega cities of Africa (Hammer 2003, p. 220). The countries such as this, unemployed personnel should meet their survival needs at any price, getting a new job, becoming an entrepreneur or amalgamating the alternative economy of the hustler.

The labor market is not that sure in the sense of the word; this is because there is always some unemployment. Labor market is very special to those who make a difference between non clearing and market clearing. Human transaction takes place