Social Security Essay Example | Topics and Well Written Essays - 1250 words

Social Security - Essay ExampleFull employment does not mean zero unemployment but means a fleck where an economy experiences only structural and frictional unemployment and an absence of cyclical unemployment. This is because structural and frictional unemployment are considered unavoidable and work positively to some extent too. The position associated with full employment is known as the full-employment rate of unemployment or as the natural rate of unemployment (NRU) and is considered to be consistent with a aim of unemployment that predominantly comprises voluntarily unemployed workers.1An economy at its natural rate of unemployment is said to be producing a non-inflationary potential output.2 Zero unemployment is not a desired state, because at this level inflationary pressures start to build in form of rising wages. This increases costs, which are in turn passed on to customers as higher prices, and this leads to inflation.Unemployment is an excess amount of force on the l abor market. An unemployed person is defined as one who is willing to work but is out of work. The unemployment rate is the number of unemployed workers split up by the civilian labor force, this includes both the unemployed and those with jobs.Frictional unemployment is unemployment which results from people moving between jobs and new workers entering the labor force.3 Frictional unemployment refers to workers who are hard-hitting for jobs and those that are waiting to work in the near future. A certain amount of frictional unemployment is unavoidable and inevitable, however this type of unemployment can be lessen to some extent by providing better information about job opportunities and availability of workers. morphologic UnemploymentStructural unemployment is more likely to be a long-lived term phenomenon than frictional unemployment and consequently have a greater impact.2 Barbiero Thomas, Brue Stanley and McConnell Campbell. Macroeconomics McGraw-Hill Ryerson Limited, (20 02) 1603 James, Elijah M. Macroeconomics A Problem Solving Approach. Prentice Hall Canada Inc. (1997) 419 Structural Unemployment is caused by a mismatch between the skills (or location) of job seekers and the requirements (or location) of available jobs. It is the type of unemployment that arises when there is a decline in the number of jobs available in a particular region or industry, and this is caused by changes in the demand pattern of consumers. If there is a permanent decline in the demand forleather shoes, the