Unemployment

Unemployment, also called joblessness, refers to those who are capable of working and actively seeking employment but cannot find any. For a person to be called unemployed, they must be an active member of the labor force and search for suitable work. 

High unemployment rates are a signal of economic distress; however, meager rates of unemployment may also mean an overheating economy. Many governments offer unemployment insurance to specific unemployed individuals that meet the standard requirements for unemployment insurance. 

Whether voluntary or involuntary, unemployment can be broken down into four types: 

1. Frictional Unemployment – This type of unemployment is usually short-lived and caused by people voluntarily changing jobs. When a person changes jobs, landing another suitable position usually takes a while. Common types of people who undergo this type of unemployment are fresh graduates. 

2. Cyclical Unemployment – A type of unemployment that arises during recessionary periods and declines during economic growth.

3. Structural unemployment – This type of unemployment occurs when a technological change happens in the structure of the economy where the labor market operates.

4. Institutional Unemployment – This type of unemployment occurs due to long-term or permanent institutional factors in the economy. For example, discriminatory hiring, minimum wage floors, generous social benefit programs, and efficiency wages. 

You might be wondering, what are the leading causes of unemployment? Research says that these factors greatly influence the unemployment rate: Depression, Job Outsourcing, Voluntarily leaving one job to find another, or personal reasons (family, mental health, physical health, etc.). 

What can we do to lessen the unemployment rate? Since this requires government actions, there are only a few things we can do to reduce the effects of unemployment. 

1. Build Digital Skills
2. Enhance your General Skills
3. Create your job position
4. Build a network
5. Keep educating yourselves
6. Take online learning courses
7. Update your CV from time to time
8. Take internship opportunities
9. Learn how to escape burnout
10. Invest in your mental and physical health

In conclusion, We still hold the rope in our lives. The world will only offer us opportunities. Whether to grab it or find another one still depends on us. Think about what you want to do with your life. What is it that you want? What are your priorities for now? What are the things you think you can do confidently? 

The solution to combat unemployment is within our hands too. Use your opportunities wisely.