Note 4- unemployment

Unemployment,which stands for those who are able,available to work and seeking jobs at the working ages but without jobs,is one of the main objectives in an economy.
There are 3 kinds of unemployments mainly:
1)Cyclical unemployment: It is arising from a lack of demands in an economy like decreasing consumption that due to the recession. The reducing demnd may discourage the industries to reduce their investment,instead,rationalise their operations by cutting jobs in order to decrease the costs.
2)Structural unemployment: It is arising from a decline in industries and occupations of jobs. As the globalisation increasing,the pattern of trades will be changed maybe leads to a large market for the unemployment or maybe no. For example,in the Uk,a lot of manufacturing industries have lost jobs maybe because of their specialisation that few people can satisfy the requirement.
3) Frictional unemployment: It's a short run unemployment that people are in-between jobs. It's a very common situation.

Of course,we can also refer to these unemployments:
1) Seasonal unemployment: This may happen on the people whose jobs are depending on the weather,such as the surfing board industries.
2) Technological unemployment
3) International unemployment

In fact,why the unemployment is so important to the economy? What will it take to the economy:
Costs:
1) Lost income for the unemployed people: This may affect their families and reducing their living standards.
2) Lost output: As less people can go to work,the labour market doesn't have enough labour to produce products and maybe it will cause supply-cost inflation.
3) Lost tax revenue and more government spending: The fewer people who have jobs,the less tax revenue the government can get and then,they have to spend more on the welfare benefits to support some people.
4) Pressure on other forms of government spending

Benefits:
1) Some people may find better jobs after the unemployment.
2) Reduce demand-pull inflation.

Then,what policies can we use to reduce it??
On demand-side,we can use fiscal policy or monetary policy:
1)Reducing tax and increasing government spending.
2)Reducing interest rate to encourage consumption and investment.

On supply side:
1) Education and training.
2) Decreasing income tax to attract more job-seekers.
3) Subsidies to some small firms to expand their sizes.

Lastly,there are two measures about the unemployment:
1) Claimant Count: The measure includes people receiving the job-seeker allowance and national insurance.
2) The Labour Force Survey: It uses the international definition of unemployment and have more datas to the precise measure.