cyclical unemployment

Examples of cyclical unemployment in the following topics:

• Employment Levels

  • Employment level, as defined by cyclical, structural and frictional unemployment, is one of the most important economic indicators.
  • Full employment, in macroeconomics, is the level of employment rates when there is no cyclical unemployment.
  • It is defined by the majority of mainstream economists as being an acceptable level of natural unemployment above 0%, the discrepancy from 0% being due to non-cyclical types of unemployment.
  • There are three important categories of unemployment levels that should be understood in order to evaluate the effect of employment levels on overall economic performance: cyclical unemployment, structural unemployment, and frictional unemployment.
  • Cyclical unemployment occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.

• The Disadvantages of Mixed Economies

  • Marxian socialists argue that because social democratic programs retain the capitalist mode of production they also retain the fundamental issues of capitalism, including cyclical fluctuations, exploitation and alienation.
  • Social democratic programs intended to ameliorate capitalism, such as unemployment benefits or taxation on profits and the wealthy, create contradictions of their own through limiting the efficiency of the capitalist system by reducing incentives for capitalists to invest in production.
  • For example, attempts to reduce unemployment too much would result in inflation, and too much job security would erode labor discipline.

• Technology decisions

  • Does it need to be able to quickly ramp up production during times of high demand, and quickly scale down production when cyclical or seasonal demand hits downturns (volume flexibility)?
  • Deere & Co manufactures machinery for the highly cyclical agricultural and construction industries.

• If recycling has so many disadvantages, why do so many businesses ignore it?

  • Yet for countries stricken with rising unemployment and rising waste and pollution levels, the question being asked is ‘exactly when will the majority of businesses take note?'

• The Argument for Barriers

  • Over that same period, total employment grew by 22 million jobs ,and the unemployment rate fell from 7.5% to 4.0% (the lowest unemployment rate in more than 30 years.).

• The Benefits of Socialism

  • The insurance typically includes monetary provisions for retirement pensions and survivor benefits, permanent and temporary disabilities, unemployment and parental leave.

• The State of the Economy

  • Although economic indicators are stronger today than they were two or three years ago, protracted high unemployment in the wake of the Great Recession has left millions of Americans with lower incomes and in economic distress.
  • Consensus forecasts predict that unemployment will remain high for many more years, suggesting that typical Americans are in for another lost decade of living standards growth as measured by key benchmarks such as median wages and incomes.
  • For example, as a result of persistent high unemployment, some expect the incomes of families in the middle fifth of the income distribution in 2018 will still be below their 2007 and 2000 levels.

• Economic Indicators

  • One such lagging indicator is the average length of unemployment.
  • One useful indicator of the outlook for future jobs is the number of new claims for unemployment insurance.

• Additional costs that result from waste

  • Unemployment and underemployment (i.e. the wasting of people) provide further examples of the cost of waste.

• Mixed Economies

  • Social market economy is the economic policy of modern Germany that steers a middle path between the goals of socialism and capitalism within the framework of a private market economy and aims at maintaining a balance between a high rate of economic growth, low inflation, low levels of unemployment, good working conditions, public welfare and public services by using state intervention.
  • However, the government would wield considerable indirect influence over the economy through fiscal and monetary policies designed to counteract economic downturns and capitalism's tendency toward financial crises and unemployment, along with playing a role in interventions that promote social welfare.