The lack of work is called unemployment.
The term unemployment refers to the lack of work . An unemployed person is someone who is part of the active population (is of working age) and who is looking for a job without getting it. This situation results in the impossibility of working despite the person's will.
Unemployment is synonymous with unemployment (a word rarely used in Latin America but very common in Spain) and unemployment . Four main types of unemployment can be differentiated: cyclical , seasonal , frictional and structural .
Types of unemployment
Cyclical unemployment consists of the lack of work during a time of economic crisis (that is, recession). These are, in general, periods that are not too long in time and are reversed along with the reactivation of the economy .
Seasonal unemployment arises from the seasonal fluctuation of supply and demand. The agriculture sector offers a clear example of this type of unemployment: during harvest times, the supply of work increases and unemployment tends to disappear; In the rest of the year, the reverse situation occurs.
Frictional unemployment occurs due to the lack of agreement between employee and employer. The characteristics of a job do not satisfy the worker and he or she leaves a job in search of another. This is temporary unemployment that is usually constant.
Structural unemployment , finally, is the most serious since it involves a technical mismatch between the supply and demand of workers. The jobs an economy requires are less than the number of people who need work. This situation requires the intervention of the State to solve the imbalance.
Unemployment can be structural, seasonal, cyclical or frictional.
Economic growth, a necessity
Unemployment is the consequence of a series of wrong legislations . Which caused the employers, who at the beginning felt extremely enthusiastic, to have lost this enthusiasm and, discouraged, have decreased their production interests .
The labor market of a society is managed based on growth. If the number of applicants for a given position increases, new jobs need to be created as well. And, for this to be done, the economy must grow by the same percentage as the number of people seeking employment.
It is a circle that is nourished by its different components. If one of these fails, a mismatch occurs that results in excess employment or unemployment: people who are left unable to aspire to a job because the market has stagnated.
Plans to alleviate unemployment
To solve this problem there are no alternatives other than a review of the laws and economic planning that promotes growth . If governments do not opt for these types of measures and, instead, prefer to create subsidies to help those without jobs free of charge, they are covering up a specific problem in the now without foreseeing tomorrow. When these people have exhausted the time in which they can receive these subsidies , they will try to re-enter the labor market without success and the problem at that time will be worse .
If, on the other hand, the government's plans are committed to economic growth , using subsidy money to create laws that enact growth and incentivize employers to improve production ; Possibly in a longer time, but also more effective, favorable results may be obtained.
In most countries there are plans to help those who have been victims of unemployment; because in the place where they worked they have reduced the workforce or because due to certain circumstances they have been left out of the market. These financial aid are calculated based on what these people have invoiced during their active period . In any case, it is necessary to point out that they are not intended for the people who need them most, since to access them it is necessary to meet a series of conditions. Therefore, even at this point these types of solutions to unemployment would not be valuable.