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Reply to Frictional unemployment occurs because it takes time for employers and workers to find each other (Rittenberg, ch 5). Throughout the course of the
Reply to
Frictional unemployment occurs because it takes time for employers and workers to find each other (Rittenberg, ch 5). Throughout the course of the year in the labor market, some workers change jobs. When they do, it takes time to match up potential employees with new employers.
Structural unemployment occurs because the results from a mismatch between worker qualifications and the characteristics employers require (Rittenberg, ch 5). Example: a general laborer or janitor is laid off. He or she doesn't have the skills for the technical jobs available in the growing technology sector.
Cyclical unemployment is unemployment is excess of the unemployment that exists at the natural level of employment (Rittenberg, ch 5). Example: Typical ebbs and flows of the construction economy, tourist season and the associated economies, etc...
While I believe resources such as LinkedIn and Indeed have reduced the impact of frictional employment, I do not think it will ever be completely eliminated. These services can greatly reduce the amount of time individuals are unemployed and businesses are without workers, but I believe this will always be a constant in some form, albeit a shorter period of time.
I think you could safely say that all unemployment is "undesirable" in a general sense. As individuals we want to have a job. As a society, we want our fellow citizens to be employed to be able to provide for themselves and their families. So in general, yes, all unemployment is undesirable. But, frictional employment for example, is necessary. As individuals life circumstances change, knowledge and experience gained, new opportunities arise, unemployment will happen. Unemployment can be healthy for an economy and a country given the preferred circumstances of unemployment.
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