Unemployment Essay Knowledge EXCLUSIVE
Unemployment Essay Knowledge >>> https://tinurll.com/2taH4u
It is worth considering how we might reduce the number of unemployed. One way to do this is to employ more people who are currently unemployed. This may be difficult because there is a limit to the number of jobs that can be created by firms within the economy.
Pension credit is the best-known form of unemployment compensation in the United States. It provides a payment to unemployed persons based on the difference between the regular wage of the job they lost and their previous wage. The federal government matches these payments up to a certain limit.
Unemployment can also occur when the demand for products and services is too low. If this happens, production has to be scaled down and workers laid off until production picks up again. This is called slack or demand deficit unemployment. Demand deficit unemployment may result from an inability to sell the same quantity of goods or services, but it can also arise due to a fall in the demand for a particular product or service, or from a reduction in consumer spending.
However, in many economies unemployment can also occur when the supply of jobs is greater than the demand for them. This is called surplus unemployment. It may occur when a greater number of people are seeking work than there are jobs available, particularly when workers from the surplus population have been laid off.
Permanent jobs offer protection against unemployment, but if an individual loses a job through a layoff, his or her employment is terminated permanently. In contrast, temporary jobs offer more security and in many cases better benefits, but they are more likely to be replaced by more temporary jobs. This is called churning and when it occurs across the entire economy a recession is said to have started.
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