Unemployment

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Content

Introduction                                                                                                              3

Unemployment. Its types, the reasons and consequences                                       4

1.1. Kinds and unemployment forms                                                                    4-5

1.2. The reasons of occurrence of unemployment                                                    6

1.3. Unemployment consequences                                                                           7

1.4. Unemployment in Russia                                                                                 8

Сonclusion                                                                                                               9

The bibliographic list                                                                                             10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Introduction

Unemployment represents the macroeconomic problem rendering the most direct and strong influence on each person. Loss of work for the majority of people means decrease in a standard of life and puts a serious psychological trauma. Therefore it is no wonder that the unemployment problem often is a subject of political debates. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Unemployment. Its types, the reasons and consequences.

1.1. Kinds and unemployment forms 

Unemployment is the phenomenon integrally connected with a labour market. By definition of the International organisation of work - any who at present has no work admits to the unemployed, searches for work and is ready to start it. Under the Russian legislation, the unemployed able-bodied citizens who have no work and earnings admit, are registered in bodies of a placement service with a view of search of suitable work, search for work and are ready to start it. Able-bodied citizens at able-bodied age (it is defined by the legislation), constantly living on territory of the given state, not having works on the hiring, not engaged in the enterprise activity, not trained in day educational institutions or not passing urgent military service and registered on labour exchange (in employment public service) are considered as the official unemployed. Modern economists consider unemployment as natural and a market economy integral part. Thereupon the great attention is given to the analysis of types of unemployment. As criterion of differentiation of kinds of unemployment the reason of its occurrence and duration, as a rule, serve, and as unemployment principal views are considered structural, frictional and cyclic (tactical). A number of the western economists allocates a special version of structural unemployment - unemployment of expectation which arises owing to considerable differences in wages level at the various enterprises. So, some workers, having left from one enterprises, occurrence of free workplaces by the trade in other firms, with higher payment meaningly expect. If the freedom in choosing of a kind of activity and a work place during each certain moment the part of workers appears in position when they have already left former work is given to the person, but have not arrived yet on the new. One of them voluntary change a work place, others - search for the first time for work, the third - have finished seasonal work. The part of the people searching for suitable work, finds a job, others - temporarily leave work, but, as a whole, this type of unemployment remains. In that case the labour market functions slowly, as though. With a scratch? Trying to bring into accord quantity and quality of workers and available workplaces. Similar unemployment name frictional. One more of unemployment kinds - seasonal unemployment which is generated by a temporality of performance of those or other kinds of activity and functioning of branches of an economy. Agricultural works, fishery, gathering of berries, a timber-rafting, hunting, partially building concern them and some other kinds of activity. In this case separate citizens and even the whole enterprises can work intensively some weeks or months in a year, sharply reducing the activity in the rest of the time. In hard work there is a mass set of shots, and in curling of works - mass lay-offs. This kind of unemployment under separate characteristics corresponds to cyclic unemployment, on another - frictional as it carries a voluntary nature. The forecast of indicators of seasonal unemployment can be defined with the big degree of accuracy as it repeats from year to year, and, accordingly, there is a possibility to be prepared for the decision of the problems caused by it. One of unemployment versions is partial unemployment which results from reduction in demand for enterprise production. In this case two variants of behaviour of the businessman are possible: or it keeps possibility to work for a part of the personnel full working hours, and other part dismisses, or without dismissal incomplete working hours give the chance to work as all, as conduct to occurrence of partial unemployment.

One more of unemployment kinds - stagnant unemployment. It characterises that part of the population which is constantly deprived work or is interrupted by casual earnings. This part of the people which have lost a lawful source of existence, as a rule, recruits underworld ranks. Proceeding from necessity of the account of the unemployed and acceptance of corresponding state measures on job security of all interested persons, distinguish: the registered unemployment which reflects quantity of the unoccupied citizens searching for work, ready to start it and registered in employment public service; the latent unemployment which the workers occupied on manufacture, but actually being concern. 
 
 

1.2. The reasons of occurrence of unemployment

The economic reasons of occurrence of unemployment concern:

1 - The High price of a labour (salary) which its seller or trade union demand. The behaviour of the buyer (employer) in the labour market is defined in the given conditions by correlation of expenses for purchase of a labour and the income which it will receive from its use during the certain period of time with those expenses which it will incur on purchase of the car replacing a labour and that result which will be brought to it by this car. If such comparison is in favour of the car the businessman will refuse purchase of a labour and will prefer the car. The labour of the person will be not sold, and it will appear in a role of the unemployed. Scientific and technical progress and increase of a technical structure of manufacture is one of the reasons of growth of unemployment in modern conditions.

2 - The low price of a labour (salary) which is established by the buyer (the employer. In this case the seller (the hired worker) refuses to sell for nothing the labour and searches for other buyer. During certain time it can remain without work and concern a category of the unemployed.

3 - Absence of cost, and accordingly and the labour prices. In a society always there are people who cannot be involved in process of manufacture because of absence at them a labour as that or labour presence so poor quality that the buyer (employer) does not wish it to get. They are tramps, declassed elements, invalids, etc. This category of citizens, as a rule, for ever loses work and its hope to find and gets to the category of the stagnant unemployed. Thus, a principal cause of occurrence of unemployment is balance infringement in the labour market. It неравновесие especially amplifies during the periods of economic recessions, wars, acts of nature. Unemployment is the integral companion of market economy. The reserve of a labour within natural norm is one of factors of its effective functioning. 
 

1.3. Unemployment consequences

Unemployment involves serious economic and social costs. One of the main negative consequences of unemployment - a non-working condition of able-bodied citizens and, accordingly, let out production. If the economy not in a condition to satisfy requirements for workplaces for all who wants and can work, who searches for work and is ready to start it who wants and can work, who searches for work and is ready to start it potential possibility of manufacture of the goods and services is lost. Hence, unemployment prevents to develop and move to a society forward taking into account the potential possibilities. Finally it is considered as decrease in rates of economic growth, backlog of volumes of increase in a total national product. Underexploitation of production potentialities of a society gives in to forecasting. So, some economists consider that excess for 1 percent of employment conducts to backlog of real volume of a total national product for 2,5 percent from potential GNP. Besides purely economic costs, it is impossible to dismiss both considerable social and moral consequences of unemployment, its negative influence on public values and vital interests of citizens. The unemployment, it would not be measured by what level, it always the tragedy for those who has no work and cannot receive a lawful source of existence. Moreover, its consequences leave far for frameworks of a material prosperity. The long divergence conducts to qualification loss that definitively kills hope to find work on a speciality. Loss of a source of existence and pity existence lead to decline of moral foundations, self-esteem loss, family disintegration etc. Researchers find a direct communication between growth of suicides, murders, mental diseases, death rates from cardiovascular diseases and a high rate of unemployment. At last, the history convincingly shows that mass unemployment leads fast, sometimes to very rough social and political changes. For this reason the state should not rely on a self-regulated role of the market in employment questions, and actively to interfere with this process.  
 

1.4. Unemployment in Russia

The situation on labour markets in different subjects of the Russian Federation is various. By the end of 1997 the differentiation of territories on a condition of regional labour markets has amplified. So, in 22 regions optimum position on a labour market where level of registered unemployment was more low average an indicator was marked and fluctuated from 0,7 to 2,5 % (for example: Moscow, Smolensk, Lipetsk, the Orenburg region, Krasnodar territory). Stable position remained in 20 regions of Russia where the rate of unemployment was in limits of 2,5-3,5 % (Tyumen, Ryazan, Voronezh, Chelyabinsk and other areas). In 33 regions level of registered unemployment has considerably exceeded average level, making from 3,6 to 6,7 % (Khabarovsk territory, Chita, Penza, Kostroma, Kurgan and other areas). In the most crisis situation there were 13 regions of Russia where level of registered unemployment in 2 times and has more exceeded national average an indicator, making from 7,3 to 22,8 %. The specified territories are carried to regions with an intense situation on a labour market (republic Ingushetia, Dagestan, Kalmykia, Udmurtiya, Ivanovo, Vladimir, Pskov, Yaroslavl and other areas). The analysis of a condition of regional labour markets testifies that the high rate of unemployment is characteristic for territories with prevalence of the enterprises of a military-industrial complex, and with also with presence of those industries which have undergone to the greatest recession in new economic conditions (textile, easy, wood industries, mechanical engineering). The Rate of unemployment in Russia has reached by the end of January, 1999 of record-breaking high mark, having made 12,4 percent from number of economically active population (in December of last year - 11,8 percent). As have informed in Goskomstat, in January, 1999 an aggregate number jobless in Russia of 8,956 million persons, half from which women. But experts consider that unemployment at us, basically, hidden and real scale exceeds official indicators many times over. Analyzing unemployment, it is necessary to notice that behind the general figures that fact is suppressed that its costs are distributed unequally.  

The conclusion

Occurrence of the unemployed depends on absolutely different factors, at times opposite each other. Thus, the problem of any state is reduced reducing quantity of the unemployed to a minimum. Unemployment renders a great influence on a society not only as economic but also as the social phenomenon, after all the unemployed, as a matter of fact, have no source of the income, except the unemployment benefit and, being limited in financial possibilities, feel defective members of a society. In case the quantity of the unemployed grows in the country and becomes critical, it can lead to such negative phenomena, as protest actions and increase in percent of the people who are living below the poverty line. To avoid it, the unemployment phenomenon should be constantly in attention of the state and be studied in detail. 
 
 
 
 
 
 
 
 
 
 
 
 
 

The bibliographic list

1. Sherhina N.V. Social of an unemployment problem// «Sociology» 1996

2. Vlasov V. Novyj a procedure for registration of the unemployed// «Employment» 1998

3. Babkina Z.V., Makarova I.K. Employment, business and vocational training in the conditions of a labour market - М, 1991

4. Sanks D. Market economy and Russia – M: «Economy», 1994.