Introduction to Economics – Assignment 2 Economics Coursework

Introduction to Economics – Assignment 2 (Individual Assignment)
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1. What is the difference between being unemployed and not working? (3 marks)
To conclude that an individual is unemployed, he/she must;
Have no job
Available for employment, and
Is actively searching or seeking for employment
Therefore, being unemployed is when someone is available for employment and is actively searching, looking, and seeking for employment but is unable to find one.
On the other hand, a not working individual is someone that do not want to work because he/she is not searching nor seeking for a job. Such people are considered to be out of the labour force.
2. What are the different types of unemployment? (2 marks)
Frictional unemployment: it is a result of an individual seeking a new employment opportunity or transitioning from his/her earlier occupation to a new occupation. Frictional unemployment is not influenced by economic factors therefore; it is also known as natural unemployment.
Structural unemployment: this is lasting unemployment that originated from a mismatch between the available abilities and what is actually needed. Mostly occurs when there are plenty jobs and individuals are eager to work, but their skills and qualities make them unqualified.
Cyclical unemployment: unemployment caused by fluctuations in output and spending. In most economies, cyclical Unemployment occurs due to a period of negative economic growth, or economic slowdown. In a recession, cyclical unemployment tends to rise sharply.
Seasonal unemployment: occurs due to the seasonal nature of some occupations and industries. For instance, people who rely on snow for occupation are likely to experience seasonal unemployment. This type of unemployment is temporary because employment usually reverts to normal after some time.
What types of unemployment are the following workers experiencing? (5 marks)
a) Workers in a fish plant in Newfoundland and Labrador lose their jobs when the cod fishery closes down. Both seasonal and cyclical unemployment because cod fish output increases during particular seasons. However, before the government closed do...