Useful Tips

Unemployment and ways to overcome it

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| RTN (Jul 2019).

In some states, unemployed workers may need to meet with unemployment officials to look for work and / or employment assistance.

First of all, do not panic. In many cases, this is a regular job search meeting. Be sure to bring a job search entry if you need to apply for a specific number of tasks each week.

How will you be notified of the meeting

If you need to attend the meeting, you will most likely receive a letter like this from your state unemployment office:

We would like to expand our assistance to help you get back to work as soon as possible. In order for us to be able to help you correctly, we have scheduled an appointment for you (date / time).

Your meeting may be an individual or group meeting with other unemployed. In any case, it is important to prepare in advance so that the consultant knows that you are fulfilling all the requirements for unemployment requirements.

How to handle a meeting without unemployment

Check out these tips on how to deal with your unemployment meeting, so you're ready in advance.

Show. If you are invited to a meeting, a visit is required. If you do not have a legitimate reason for refusing (for example, illness), you can jeopardize your unemployment benefits if they do not appear.

Re-planning. If you need to reschedule a meeting, do it as early as possible. Contact information should be on the letter received.

If not, contact your state unemployment office for information on redevelopment.

Be on time. Come a few minutes early and be prepared to go through the security line to enter the office.

Dress properly . Dress as if you were going to work. Do not wear sweatpants or other casual clothing. It is important to show that you are serious about finding a new job.

You have a job search list. Bring a list of tasks to which you applied, and information about how you applied for each position (online, email, personal data, etc.).

Bring your resume. Bring a copy of your resume, or you may be assigned a resume class.

Note. Pay attention to your consultant and the offers that they give you. Do not interrupt and do not forget to thank you after the meeting. If this is a group session, do not monopolize the conversation.

What to disclose

Finally, it is important not to disclose too much information. There is no need to mention other activities that you do while you are unemployed, because you do not know how they will affect your unemployment claim. Focus on your job search and what you are looking for full time.

What else do you need to know: What happens if an employer competes in your unemployment application?

Recommended reading:

  • Unemployment benefits
  • Eligibility for unemployment benefits
  • Applying for unemployment benefits online
  • Unemployment Claims Question / Answers

Unemployment concept

Unemployment corresponds to such a state of the economy when part of the economically active population is not engaged in the production of goods, work, services. In other words, part of the population sits “without work”. The result is a reduction in potential gross national product and a decrease in the average standard of living of the population.

Unemployment - a socio-economic phenomenon, when part of the economically active population cannot find a job.

The concept of unemployment is interpreted as a situation in which people who want to work cannot find work at the usual wage rate in the current economic conditions.

Directly among workers, unemployment causes a loss of qualifications and professional skills among the economically active population, can break the fate of people who are left without work, and contributes to the loss of self-esteem among skilled workers, who subsequently reduce the level of desired wages out of fear to continue to be without work. For society, unemployment is dangerous because it destroys moral principles, leads to the collapse of families and the degradation of social relations.

The unemployment rate is measured as a percentage of the total economically active population. In a market economy, unemployment always exists and is an integral part of it, while the unemployment rate is variable and varies for various reasons, never decreasing to zero.

The able-bodied population includes all people who are able to work by age and health.

Accordingly, the achievement of a state of full employment in which the entire able-bodied population has a job, i.e. 100% of the workforce is engaged in the production of goods, work, services, in a market economy impossible.

The unemployment rate is the percentage of the number of unemployed in the economy to the able-bodied population, from which children under 16 years of age, students, pensioners, prisoners, as well as those who cannot work because of health are excluded.

Unemployed are people of working age who do not have a job, enter the labor market and seek work. Persons employed in the production of goods, work, services part-time or weekly are considered employed and are not considered unemployed, even if they are looking for full-time jobs.

The workforce does not include persons who do not have work but do not search for it. In relation to these persons, it is assumed that they have no interest in finding work in the labor market, i.e. did not enter the labor market, therefore, they do not belong to the unemployed.

Also, the workforce does not include persons who, for one reason or another, have refused to seek employment.

The natural level of unemployment is a consequence of mobility and flexibility of the labor market, the movement of labor between regions and sectors of the economy. It characterizes the economic feasibility of using labor in a particular industry and the effectiveness of the functioning of the economic system. It is defined as the lowest level of unemployment, which is achievable with the current structure of the economy and does not lead to inflation.

It should be borne in mind that the institutional population is allocated from the workforce, which is oriented towards working in state institutions, for example, in the army, police, state apparatus, etc.

Indicators used in assessing unemployment and employment:

  • non-institutional population (Nnn),
  • number of employees (h s),
  • the number of unemployed (W b),
  • the number of persons not included in the workforce (HRNS).

The following relationships exist between these indicators:

  • the strength of the workforce h rs = h s + h b,
  • non-institutional population of Ch nn = Ch s + Ch b + Ch rs,
  • the level of employment of the population W s = H s / H nn,
  • the unemployment rate of the population U b = H b / (H s + H b),
  • unemployment rate N b = [B b / (B s + B b)] x 100%,
  • the level of involvement of the population in the workforce At vrs = (W z + B b) / H nn.

These indicators are influenced by the following factors:

  1. demographic composition
  2. age and sex structure
  3. ethnic composition
  4. social structure of the population
  5. correlation of supply and demand in the labor market in individual regions and industries

Types of Unemployment

The classification of types of unemployment depending on various characteristics is given in the table.

Types of Unemployment

Voluntary unemployment - workers quit on their own

A certain part of the able-bodied population enters the labor market, becoming unemployed voluntarily, for personal reasons - in order to find a better job or pay.

Forced unemployment - entrepreneurs reduce production and staff

This type of unemployment is caused by the lack of jobs corresponding to the qualifications of unemployed specialists. It is a consequence of the violation of supply and demand for labor.

Causes of Unemployment

Frictional unemployment - a mismatch in the change of jobs of workers in time

It is considered normal, since there are always some people who are in the process of changing their place of work, industry, profession, region of work, etc. This type of unemployment arises because a job always takes some time and there is some inconsistency between the available information about vacancies and job offers. It is characterized by a low duration of 1-3 months.

Structural unemployment - the reduction of some sectors and the emergence of other sectors of the economy.

Arises when there is a reorientation of enterprises to new areas of activity, there is a need for the re-qualification of the workforce. This type of unemployment is associated with technological changes that lead to a change in demand for labor. It is a consequence of the development of the economy, technology, science, as well as changes in the vocational qualification structure of the workforce, its territorial and sectoral redistribution. It corresponds to the situation when workers, having lost their jobs in some sectors of the economy, cannot get a job at existing vacancies in other sectors. Affects workers of low qualification, outdated profession, the population of economically backward areas. Usually the duration is 4-8 months.

Seasonal unemployment - is typical for individual industries with a seasonal nature of production (agriculture, construction, crafts), when there is a sharp change in demand for labor during the calendar year.

It is determined solely by the features of the rhythm of the production process in the industry or a specific field of activity. It is characterized by the possibility of sufficiently accurate forecasting, which allows you to take this factor into account when concluding labor contracts with employees. The duration of this type of unemployment coincides with the duration of the seasonal decline in demand for labor in a particular industry or field of activity.

Cyclical unemployment - is formed when changing the cycles of economic development.

It varies in duration and composition and is characterized by an increased deviation of the unemployment rate from the natural one. This type of unemployment is caused by the cyclical development of the economy, fluctuations in production volumes and demand for products. Varies depending on the phase of the business cycle. It arises during a cyclical recession of the economy and supplements the friction and structural ones, which also grow during this period. Cyclical unemployment is most exacerbated during a period of depression. There is no cyclical unemployment during the period of economic recovery.

Technological unemployment - formed due to the emergence of new technologies and equipment

After the introduction of new technologies and equipment at enterprises, part of the workforce is freed up by replacing people with machines and / or reducing the need for personnel, which leads to this type of unemployment. If the economy is growing, then the duration of technological unemployment is low and almost coincides with the frictional one, as workers get jobs at new jobs. Also a consequence of technological unemployment in this case is an increase in employment due to the involvement of new professions and higher qualifications in the economy of workers. If the growth rate of the economy does not exceed 1-2% (or even negative at all), then technological unemployment will have a long duration, more than 12 months, the actual number of jobs will not increase, and the standard of living of the population will fall. Also, technological unemployment will be superimposed on structural unemployment.

Regional unemployment - arises as a result of the difference in the demand for labor and its supply in a particular region

It is formed due to the objective unevenness of the socio-economic development of different territories. Accordingly, this type of unemployment may be due to natural resource, demographic, technical, economic, historical, cultural and other features of a particular region. Regional unemployment is manifested at the level of individual regions of one country that have an excessive amount of labor, as well as at the interstate level, which led to the development of labor migration and the emergence of migrant workers who travel to countries with higher wages.

Able-bodied workers have a desire to work, but for certain reasons do not have a job.

Reluctance to engage in labor for one reason or another. The growth of this type of unemployment leads to the degradation of the labor market.

It stands out among the general unemployment, as the unemployment rate among young people is higher than in other age groups.

Corresponds to the unemployment rate in the economy as a whole.

Open unemployment - workers enter the labor market.

This type of unemployment is divided into registered and unregistered. Registered includes all those who are registered with state bodies and are registered. Moreover, if such persons comply with the legislative conditions, then they receive unemployment benefits. Unregistered unemployment includes those who are not registered as unemployed, do not receive benefits, without having any work. Therefore, unregistered unemployment drops out of the actual unemployment rate, as it cannot be counted.

Hidden unemployment - workers do not enter the labor market.

This type of unemployment occurs in the economy when there are people who want to work, but are not registered as unemployment. Part of the hidden unemployment includes people who have stopped looking for work for some reason.

Chronic nature of unemployment (period of absence of work)

more than 18 months

Ways to overcome unemployment and measures to reduce it

Since unemployment is a serious macroeconomic problem, an indicator of macroeconomic instability, the state is taking measures to combat it.

For different types of unemployment, because they are due to different reasons, different measures are used. Moreover, ways to overcome unemployment should be applied taking into account the current economic situation in the country.

There are only two main ways to overcome unemployment:

  1. Unemployment benefits
  2. Creation of employment services and employment offices

These methods are implemented by the state, depending on the current economic situation in the country.

Measures to reduce unemployment are applied depending on its type and causes.

1. To combat frictional unemployment, use the following measures:

  • improving the system of collecting and providing information on the availability of jobs
  • creation of special services for these purposes

2. Measures to combat structural unemployment are

  • creation of public services and institutions for retraining and retraining
  • stimulating the development of private enterprises and services providing retraining and retraining of workers

3. The following measures are used to combat cyclical unemployment:

  • pursuing a countercyclical policy aimed at preventing deep recessions in production and, consequently, mass unemployment
  • creation of additional jobs in the public sector of the economy

To overcome seasonal unemployment, the key way is to stimulate inter-seasonal work in related industries and fields of activity.

The only way to combat regional unemployment is to create new jobs in the region.

Effective ways to combat technological unemployment have not been developed at the moment. The conspiratorial version says that because of this, in a number of states, governments deliberately slow down the development of technology and science so as not to provoke stagnant unemployment and prolonged depression due to a massive reduction in labor demand. However, this version does not find real confirmation due to the rapid development in recent years of robotics, unmanned vehicles, the emergence of robots that will replace the living workforce in many industries and fields of activity.

To combat unemployment, it is necessary to maximize the possibilities of state employment policy.

The implementation of an active policy to accelerate structural reforms, increase labor productivity, reduce social tension in society, and develop human capital will allow the prevention of unemployment.

Activation of employment is possible due to the development of the following areas:

  1. stimulation of entrepreneurship and self-employment
  2. organization of assistance in finding jobs for people with difficulties
  3. создание новых рабочих мест на вновь создаваемых малых предприятиях, так и за счет открытия новых средних и крупных производств уже существующими компаниями
  4. structural transformations of the economy through the creation of new industries in the construction of the digital economy, the implementation of import substitution policies, and the development of industry
  5. using the potential of educational institutions to develop a system of training, retraining and advanced training of personnel in the labor market
  6. stimulating the development of a range of public works in the context of the development of municipalities in terms of improving social, transport, road, environmental infrastructure

The priority role in overcoming unemployment is played by medium-term targeted programs based on a set of measures to stimulate economic activity and the use of various instruments of employment policy.

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