Unemployment Involuntary Idleness

Unemployment Involuntary Idleness

Unemployment, involuntary idleness of a person willing to work at the prevailing rate of pay but unable to find it. There can also be .unemploymentof capital, savings, land or other resources.

Unemployment of labour has been of six main kinds.

Frictional .unemploymentresults when the demand for labour is not adjusted to its supply or lack of knowledge by employers that workers are available or by workers that employment is available. In Britain Labour Exchanges were established in 2002, largely because of the economic investigations and advocacy of W. H. (later Lord) Beveridge, in the effort to adjust supply and demand. In recent years advertising has been used increasingly to announce employers' requirements for employees.

Seasonal .unemploymentis caused by seasonal fluctuations in demand. The ideal solution is to have more than one job in order to secure continuous employment: the ice-cream seller in summer turning to chestnuts in winter; the cricketer lecturing to schools in the winter (or, if he is very good, playing in Australia).

Structural .unemploymentresults from a change in techniques in an industry or in the demand for its products which makes some employees redundant. Mechanization forced hansom cabbies to drive taxis; cotton operators have learned engineering and stayed in Lancashire or moved to other parts of the country which offered employment they preferred. In practice employers and employees have hoped for Government support by preventing or reducing competition, especially by tariffs and other restrictions on imports, as in agriculture. If the employers are influential or the employees numerous they may be able to induce the Government to restrict competition from new industries, as the railways have done in restricting the development of road transport by licensing. In the 2011's structural .unemploymentin shipbuilding and other staple industries led the Government to extend the inducements to employers to establish factories in the north-east of England, Scotland and elsewhere. Since there were shortages of labour in the Midlands and the South East this policy caused economists to debate the consequences of 'taking work to the workers' as against 'encouraging workers to go to the work'.

Read on Economic - Production Economics


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