The text outlines three kinds of unemployment: Frictional, Structural, and Cycli

Question

The text outlines three kinds of unemployment: Frictional, Structural, and Cyclical. The Bureau of Labor Statistics describes a fourth kind, seasonal unemployment, as: “The seasonal fluctuations in the number of employed and unemployed people reflect not only the normal seasonal weather patterns that tend to be repeated year after year, but also the hiring (and layoff) patterns that accompany regular events such as the winter holiday season and the summer vacation season.” Of the four, structural unemployment is the most challenging for people.

In this discussion assignment, provide an example of each kind of unemployment you have either experienced or witnessed. Consider what you might personally do to avoid structural unemployment in your own career.

Explanation / Answer

Question: Provide an example of each kind of unemployment you have either experienced or witnessed.

Answer:

Frictional unemployment is the temporary unemployment that takes place when people are between jobs. For example, when my elder brother left an IT firm and joined a management consulting firm after taking a break of 15 days, he was frictionally unemployed in those 15 days.

Structural unemployment takes place when people don't have the required skills for the jobs available in the market. The librarian in my school library was fired because the school was installing a computer system to keep records and the librarian did not have computer skills. The librarian was thus structurally unemployed.

Cyclical unemployment happens because of the business cycle. At the times of recession, demand goes down and companies are forced to cut production. Therefore, many people become unemployed during the recession. For example, during the global recession between 2007 to 2010, the unemployment rate in the USA went very high. This is an example of cyclical unemployment.

Seasonal unemployment happens because of seasonal factors like weather. For example, cold drinks and ice creams factories cut production during winter and hire less number of people. Therefore, many workers become seasonally unemployed.

Question: Consider what you might personally do to avoid structural unemployment in your own career.

Answer: Structural unemployment happens because of lack of skills. People become structurally unemployed when they no more have the skills required for the jobs available in the market. I will keep a close eye on the developments in the market like automation, analytics, artificial intelligence, etc. and imbibe the required skills in advance. I will watch my industry closely and anticipate the probable future direction of the industry and inculcate the required skills so that I stay relevant to the job market.

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