i.e the number of unemployed worker divided by the total number of people in the labor force. People in the age group 16-64 constitute the labor force. The Business Week reported in 2011 that around the world more than 200 people are out of a job. There are three main types of unemployment. Structural unemployment is as result of lack of demand for the workers for a particular industry. Frictional Unemployment is caused by people moving from betweens occupations and locations. Cyclical unemployment is also known as demand deficient unemployment and occurs when there is not sufficient aggregate demand to offer jobs to all the workers. E.g. not finding work due to recession.
According to a Gallup poll conducted over a telephonic survey towards the end of the year 2011, Unemployment topped the list of problems faced by Americans for the second consecutive month. 35% of Americans recognized unemployment as the major dilemma that they face. They said that the economy was the second problem. It was followed by healthcare and then government. Moreover the unemployment rate has improved in the last couple of months but is at 9% with about 14 million Americans searching for work. The Bureau of Labor Statistics (BLS) highlighted that more 8 million people who are capable of having a full-time job are currently working part-time. A million people are categorized as ‘discouraged workers’ meaning that they are willing to work but feel that there is no job available for them. Furthermore Americans faced the longest during of unemployment rising up to 36.9 weeks which is the highest since 1948. (Linn)
This serious crisis has psychological costs along with the social costs. It causes critical health problems, depressions and anxieties, people lose their self esteem and become hopeless. The spending power falls and effects sense of accomplishment and social status. Moreover along with the person the family and those close to him also