Unemployment Basics

Types of unemployment :

High levels of unemployment reflect how damaged is the economic and social situation of a country, it not only affects the country for having so many people of working age without employment, but also constitutes a destructive burden of the basic unit of society: family. 

From the economic point of view human society consists of different types of people: 

- Economically Active Population is the population who is between the parameters of working age and is usually made up of people who is aged from 15 to 64 years, that range is also used for purposes of determining the economically active population. 

- Non  working population is conformed of population under the age of 12 years and of those who are older than 65 years, here we find newborns, children from zero months to 12 years, the elderly aged from 65 years and any person who found physically or mentally incapacitated from performing a job or earning an income. 

The active population for census purposes is divided into economically active population known as EAP, formed by all of those who are in working age and that are seeking for a job, whom, at the same time are composed of: 

-  The busy economically active population is conformed by the people who, having the legal working age, had a job or performed an economic activity carried out independently at the time of the census to generate money. 

-  The non busy economically active population is comprised by those people who have the legal working age at the time of the census did not have a job but were looking for one. 

When a person in working age, is looking for a job and cannot find one, he or she is referred to as an unemployed, so we can say that the economic phenomenon that affects people of working age who are unable to find a job is called unemployment. 

The unemployment rate in modern societies is used to measure the economic welfare of its population; the higher it is, the poorer the population will be considered and with an economy without elements to attract all those who, by age, are available to work. 

There are several types of unemployment:  

-  The frictional unemployment is caused by the continuous movement of workers seeking for better jobs and economic opportunities or because their employer ceases them. In any event, this type of unemployment is caused by the free choice of the worker or the employer (indeed framed in the law). 

-  Structural unemployment occurs when, due to structural changes that occur at the level of industry in the economy and the emergence of new economic sectors, the job offers do not meet the demand for employment of the economically active population, because they not grow at the same rate due to rapid population growth or to the excessive specialization that prevents a job applicant from meeting the requirements due to low educational levels prevailing in their society. In a modern setting, we can say that if we see a lot of job ads in newspapers, the requirements to obtain, such as experience, language training, skills and abilities required in most cases are unattainable for most readers in search of employment, not even their ideal job, but at least an adequate one. 

- Cyclical unemployment occurs in relation to economic cycles, because when the cycle is on upswing, production increases, the number of jobs grows and therefore unemployment is falling and when the recession cycle, since production is reduced, the jobs offer is reduced and, therefore, unemployment increases.

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