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Frictional unemployment

 Unemployment - an essential feature of a market economy

An important cause of unemployment may be the country's policy regarding remuneration of labour in a particular field of activity: increase of the minimum salary levels entail the emergence of production costs, as a consequence, reduced the demand for labour.

There are many other problems which affect unemployment. But the overall picture is most clearly seen in third world countries, the post-socialist countries and States suffering from the economic downturn. Currently, there are several types of unemployment: friction, seasonal, structural, cyclical and hidden. The most widespread were the first two types, therefore, consider them in detail.

Frictional unemployment

What is this unemployment? Friction type of unemployment represents a certain period of time, which occurs between dismissal from the previous place of work and before transfer to another job. In other words, this is a temporary unemployment arising in connection with the search of new places of work.

This process is normal and logical phenomenon for all kinds of States, regardless of level of development or development of the economy. Frictional unemployment is a kind of social mobility, which can be manifested both in the horizontal and in the vertical dimension. Vertical dimension of the unemployment means a transition to a new job which is better paid, while the horizontal aspect may occur for many reasons - for example, moving to another country or to a new place of residence. And in this regard a person is forced to find a new place of work.

 Dynamics of total unemployment in Russia

Frictional unemployment includes not only the citizens, who left their jobs and are in search of new, but those who first began to find her. These include and graduates of higher educational institutions, who, after obtaining specialty forced to get a job. This is a fairly complex process that can take months or even years, since many employers focus on the years of service and work experience on a speciality, where young specialists are not available. Therefore, people who left their jobs and are looking for a new, much easier to find a new place.

When a person passes to a higher position or highly paid place of work, his previous place is released, that gives a chance of employment for the unemployed. But in any case, even despite this advantage, frictional unemployment remains a negative factor in the economy.

We can say that this form of unemployment is not detrimental to the economy of the state and shall not entail negative consequences. On the other hand, the sharply increased number of the unemployed is nothing but a manifestation of the negative trends on the labour market. And in some cases even this unemployment can bring negative changes, if not on the scale of macroeconomics, then the scale of microeconomics exactly.

Seasonal form of unemployment

One of the most common forms of unemployment among the economically active population is seasonal unemployment. As is clear from the name itself, it is more connected with seasonal character of the implementation of labour in certain types of production - agriculture, construction and some others. If we imagine a graph similar to the unemployment rate, it will have the form of a sine - wave-like changes regarding direct. The same thing happens actually - level labour increases in certain seasons, when there is work, and decreases when such work is available.

 Seasonal surges in unemployment in Russia 2002-2010

Seasonal unemployment is difficult to predict, because it depends entirely on the geographic area of residence of the population and its cultural and economic features. Examples of seasonal unemployment can result set. Many resort towns on the South "come alive" by the opening of the resort season - start their activities entertainment, attractions, organizes various excursions etc. for The remaining period of time rather large percentage of the population is unemployed.

You can also include and implementation of various agricultural works, construction works on the territory of the Far North, decrease or increase in the demand for workers in certain areas of production. In General, seasonal unemployment is a negative factor only for specific geographical areas, but the majority also brings significant harm - the majority of the economically active population has the necessary tools of labour, which helped them to survive the recession of demand.


It is worth remembering that unemployment is a temporary phenomenon for those who are looking for work, so afraid not, in periods when you cannot find the required workplace - you can do an extra income, variants of which there are a large number.

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