The number of adults (over 16 years old) of the working-age population who has a job is understood. But not all of the able-bodied population has a job, there are also unemployed. Unemployment is characterized as the number of the adult working-age population who do not have a job and are actively looking for it. The total number of employed and unemployed makes up the labor force.
Various indicators are used to calculate unemployment, but it is generally accepted, including in the International Labor Organization. It is defined as the ratio of the total number of unemployed to the labor force, expressed as a percentage.
Unemployment- a socio-economic phenomenon in which part of the labor force is not employed in the production of goods and services.
However, even in such a situation, there is some unemployment, called frictional.
Causes of frictional unemployment
Frictional unemployment arises from the dynamism of the labor market.
Some employees voluntarily decided to change jobs, finding, for example, more interesting or high-paying jobs. Others are trying to find a job because of dismissal from their previous job. Still others enter the labor market for the first time or re-enter it, moving from the category of the economically inactive population to the opposite category.
Structural unemployment
Structural unemployment - associated with technological changes in production that change the structure of demand for labor (arises if an employee dismissed from one industry cannot get a job in another).
This type of unemployment occurs when the sectoral or territorial structure of the demand for labor changes. Over time in structure consumer demand and important changes are taking place in production technology, which, in turn, change the structure of the total demand for labor. If the demand for workers in a given profession or in a given region falls, then unemployment appears. Released workers cannot quickly change their profession and qualifications or change their place of residence and remain unemployed for some time.
In the figure, decreased demand is represented by a line. In this case, provided that wages do not change instantly, the segment represents the amount of structural unemployment: at the wage rate, there are people who are ready but cannot work. Over time, the equilibrium wages will drop to a level at which only frictional unemployment will again exist.
Many economists do not make a clear distinction between frictional and structural unemployment, because in the event of structural unemployment, laid-off workers start looking for a new job.
It is important that both types of unemployment constantly exist in the economy. It is impossible to completely destroy or reduce them to zero. People will look for other jobs, strive to improve their well-being, and firms - more qualified workers, seeking to maximize profits. That is, in a market economy, there are constant fluctuations in supply and demand in the labor market.
Since the existence of frictional and structural unemployment is inevitable, economists call their sum natural unemployment.
Natural unemployment rate- this is its level that corresponds to full employment (includes frictional and structural forms of unemployment), due to natural reasons (staff turnover, migration, demographic reasons), is not associated with the dynamics of economic growth.
It occurs when a drop in the aggregate demand for manufactured products causes a drop in the aggregate demand for labor in conditions of the inflexibility of real wages downward.
The figure shows the situation of the rigidity of wages. The proposal is represented by a vertical line for ease of presentation.
If real wages are above the level corresponding to the equilibrium point, the supply of labor in the market exceeds the demand for it. Firms need fewer workers than the number of people willing to work at this level wages. On the other hand, firms are unable or unwilling to reduce wages for a number of reasons.
Minimum Wage Act
According to this law wages cannot be set below a certain threshold. For the majority of employed people, this minimum has no practical significance, but there are some groups of workers (unskilled and inexperienced workers, adolescents) for whom the established minimum raises earnings above the equilibrium point, which reduces the demand of firms for such work and increases unemployment.
Despite the fact that only a small proportion of the labor force in the country is unionized, they prefer to lay off workers rather than cut wages. The reason is as follows. Temporary wage cuts reduce the wages of all workers, while layoffs affect, in most cases, only newly hired workers, who represent only a small fraction of union members. In this way, trade unions achieve high wages by sacrificing the employment of a small number of workers who are union members. A collective agreement between a firm and a union can also lead to unemployment. As a rule, it is concluded for a long time, and if the agreed level of wages exceeds the equilibrium level, then the firm will prefer to hire fewer workers at a high price.
Effective wages
Effective wage theories assume that high wages increase worker productivity and reduce firm turnover. This policy allows attracting and retaining highly qualified specialists, improving the quality of work and the motivation of employees. Reducing wages reduces motivation to work and encourages the most capable workers to look for another job.
Psychological aspect
Obviously, the market does not exist flat rate wages for all firms. In large firms, wages tend to be higher. However, workers in large firms sometimes prefer to remain unemployed than to move to low-paying jobs. According to some economists, this behavior is caused by the self-esteem of workers, their desire for a certain position in society.
Institutional unemployment
Institutional unemployment - arises from the limited labor force and employers in up-to-date information about vacancies and wishes of employees.
The level of unemployment benefits also affects the labor market, creating a situation where an individual who has the opportunity to get a low-paid job prefers to sit on unemployment benefits.
This type of unemployment occurs when the labor market is not functioning efficiently enough.
As in other markets, there is limited information... People may simply not be aware of existing vacancies, or firms may not be aware of the employee's desire to take the proposed position. Another institutional factor is unemployment benefit level... If the level of benefits is high enough, then a situation arises called the unemployment trap. Its essence lies in the fact that an individual who has the opportunity to get a low-paying job will prefer to receive benefits and not work at all. As a result, unemployment increases, and society suffers losses not only because of what is produced at a level below potential, but also because of the need to pay inflated unemployment benefits.
Unemployment rates
The duration of unemployment is also referred to as indicators of unemployment.
Duration of unemploymentDefined as the number of months a person has spent without a job.
As a rule, most people find work quickly, and unemployment is a short-term phenomenon for them. In this case, we can assume that this is frictional unemployment, and it is inevitable.
On the other hand, there are people who cannot find work for months. They are called long-term unemployed. Such people feel the burden of unemployment most acutely and often, desperate to find a job, leave the group.
Main categories of the population
An important phenomenon that characterizes macroeconomic instability and has a cyclical nature of development is unemployment. To determine who the unemployed are, one should consider the main categories of the country's population.
The population (population - POP) of the country from a macroeconomic point of view is divided into two groups: included in the labor force (L) and not included in the labor force (non-labor force - NL): POP = L + NL.
The category "non-labor force" includes people who are not employed in social production and do not seek to get a job. The following population groups are automatically included in this category: children under 16; persons serving sentences in prisons; people in psychiatric hospitals and people with disabilities. (These categories of people are called "institutional populations" because they are supported by state institutions.) In addition, the category of people not included in the labor force includes people who, in principle, could work, but do not do it for various reasons, i.e. .e. who do not want or cannot work and are not looking for work: full-time students (since they must study); retired (since they have already worked their way); housewives (since although they work full time, they do not work in social production and do not receive payment for their labor); vagabonds (because they just don't want to work); people who stopped looking for work (looking for a job, but desperate to find it and therefore dropped out of the labor force).
The category "labor force" includes people who can work, want to work and are actively looking for work. Those. these are people, either already employed in social production, or not having a job, but making special efforts to find it. Thus, the total workforce is divided into two parts:
- employed - E - i.e. having a job, and it does not matter if the person is employed full-time or part-time, full-time or part-time. A person is also considered to be employed if he does not work for the following reasons: a) is on vacation; b) is sick; c) goes on strike and d) because of bad weather;
- unemployed (U) - i.e. not having a job, but actively looking for it. Job search is the main criterion that distinguishes the unemployed from people who are not included in the labor force.
Thus, the total labor force is equal to: L = E + U.
(At the same time, military personnel in active military service, although formally refer to the employed, as a rule, when calculating the unemployment rate indicator, are not taken into account in the total labor force. This indicator is usually (if not specifically stated) calculated only for the civilian sector of the economy .)
Employment and unemployment, labor force and non-labor force indicators are indicators of flows. Movements constantly occur between the categories of “employed”, “unemployed” and “not included in the labor force” (Fig. 1.). Some of the employed lose their jobs and become unemployed. Some of the unemployed find work by becoming employed. Some of the employed quit their jobs and leave the public sector of the economy (for example, retiring or becoming a housewife), and some of the unemployed, in despair, stop looking for work, which increases the number of those not included in the labor force. At the same time, a part of people who are not employed in social production begins an active search for work (non-working women; students who graduated from higher educational institutions; wanderers who have changed their minds). As a rule, in a stable economy, the number of people losing their jobs is equal to the number of people actively looking for it.
The main indicator of unemployment is the unemployment rate. The unemployment rate (rate of unemployment - u) is the ratio of the number of unemployed to the total labor force (the sum of the number of employed and unemployed), expressed as a percentage: u = U / L * 100% or u = U / (E + U) * 100%.
Another important indicator labor force statistics is the labor force participation rate, which is the ratio of the labor force to the total adult population, expressed as a percentage:
labor force participation rate = labor force / adult population
Causes and types of unemployment
There are three main reasons for unemployment:
- job loss (dismissal);
- voluntary leaving work;
- first appearance on the labor market.
There are three types of unemployment: frictional, structural and cyclical.
Frictional unemployment (from the word "friction" - friction) is associated with the search for work. Obviously, finding a job takes time and effort, so a person who is waiting or looking for a job is unemployed for some time. A feature of frictional unemployment is that ready-made specialists with a certain level of professional training and qualifications are looking for work. Therefore, the main reason for this type of unemployment is the imperfection of information (information about the availability of vacant jobs). A person who loses his job today usually cannot find another job tomorrow.
The frictional unemployed include:
- dismissed from work by order of the administration;
- resigned of their own free will;
- awaiting recovery at their previous job;
- those who have found a job, but have not yet started it;
- seasonal workers (out of season);
- people who first appeared on the labor market and have the required level of professional training and qualifications in the economy.
Frictional unemployment is not only an inevitable phenomenon, since it is associated with natural tendencies in the movement of the labor force (people will always change jobs, seeking to find a job that best suits their preferences and qualifications), but also desirable, since it contributes to more rational placement workforce and higher productivity (the work you love is always more productive and creative than the one that a person forces himself to do).
The level of frictional unemployment is equal to the ratio of the number of frictional unemployed to the total labor force, expressed as a percentage: u frikts = U frikts / L * 100%.
Structural unemployment is caused by structural changes in the economy, which are associated a) with a change in the structure of demand for products of different industries and b) with a change in the sectoral structure of the economy, which is caused by scientific and technological progress. The demand structure is constantly changing. The demand for the products of some sectors is increasing, which leads to an increase in demand for labor, while the demand for the products of other sectors is falling, which leads to a decrease in employment, layoffs of workers and an increase in unemployment. Changes over time and industry structure production: some industries become obsolete and disappear, such as the production of steam locomotives, carriages, kerosene lamps and black-and-white televisions, while others appear, such as the production of personal computers, VCRs, pagers and mobile phones... The set of professions required in the economy is changing. The professions of a chimney sweep, glassblower, lamplighter, coachman, traveling salesman disappeared, but the professions of a programmer, image maker, disc jockey, and designer have appeared.
Structural unemployment is caused by the mismatch between the structure of the labor force and the structure of jobs. This means that people with professions and qualifications that do not meet modern requirements and the modern industry structure, being laid off, cannot find a job. In addition, the structural unemployed includes people who first appeared on the labor market, including graduates of higher and secondary specialized educational institutions, whose profession is no longer required in the economy. The structural unemployed also includes people who have lost their jobs due to a change in the structure of demand for products of different industries. IN different periods Over time, the demand for the products of some industries is growing, so production is expanding and additional workers are required, while the demand for the products of other industries is falling, production is shrinking, and workers are fired.
The structural unemployment rate is calculated as the ratio of the number of structural unemployed to the total labor force, expressed as a percentage: u structure = U structure / L * 100%.
Since both frictional and structural unemployment are associated with job searches, these types of unemployment are categorized as “search unemployment”.
Structural unemployment is longer and more expensive than frictional unemployment, since it is almost impossible to find work in new industries without special retraining and retraining. However, like frictional, structural unemployment is an inevitable and natural phenomenon (i.e., associated with natural processes in the development and movement of the labor force) even in highly developed economies, since the structure of demand for products of different industries is constantly changing and the sectoral structure of the economy is constantly changing. in connection with scientific and technological progress, and therefore in the economy, structural changes constantly occur and will always occur, provoking structural unemployment. Therefore, if there is only frictional and structural unemployment in the economy, then this corresponds to the state of full employment of the labor force, and the actual volume of output in this case is equal to the potential one.
Consequences of unemployment
The presence of cyclical unemployment is a serious macroeconomic problem, is a manifestation of macro economic instability, evidence of underemployment of resources.
They highlight the economic and non-economic consequences of unemployment, which are manifested both at the individual level and at the social level.
The non-economic consequences of unemployment are the psychological and social and political consequences of losing a job. At the individual level, the non-economic consequences of unemployment are that if a person cannot find a job for a long time, this often leads to psychological stress, despair, nervous (up to suicide) and cardiovascular diseases, and family breakdown. Loss of a stable source of income can push a person to commit a crime (theft and even murder), antisocial behavior.
At the level of society, this, first of all, means an increase in social tension, up to political upheavals. It is no coincidence that American President Franklin Delano Roosevelt, explaining the reason for the development and implementation of the New Deal policy for the exit from the Great Depression, the main problem of which was huge unemployment (in the United States during this period, every fourth was unemployed), wrote that by doing so he wanted "To prevent a revolution of despair." Indeed, military coups and revolutions are associated precisely with a high level of social and economic instability. In addition, the social consequences of unemployment are an increase in the level of morbidity and mortality in the country, as well as an increase in the crime rate. The costs of unemployment should also include the losses incurred by society in connection with the costs of education, vocational training and the provision of a certain level of qualifications to people who, as a result, are unable to apply them, and, therefore, recoup.
The economic consequences of unemployment at the individual level are the loss of income or part of the income (i.e., a decrease in current income), as well as a loss of qualifications (which is especially bad for people in the newest professions) and therefore a decrease in the chances of finding a high-paying, prestigious job in the future (i.e. e. a possible decrease in the level of future income).
The economic consequences of unemployment at the level of society as a whole consist in the underproduction of the gross national product, the lag of actual GDP from potential GDP. The presence of cyclical unemployment (when the actual level of unemployment exceeds its natural level) means that resources are not fully used. Therefore, actual GDP is less than potential GDP (GDP at full employment of resources). The lag (gap) of actual GDP from potential GDP (GDP gap) is calculated as a percentage of the difference between actual and potential GDP to the value of potential GDP:
GDP gap = (Y - Y *) / Y * * 100%,
Where Y is actual GNP and Y * is potential GDP.
The relationship between the lag in output (at that time GNP) and the level of cyclical unemployment empirically, based on the study of US statistics for a number of decades, was deduced by the economic adviser to President J. Kennedy, the American economist Arthur Okun (A. Okun). In the early 1960s, he proposed a formula that showed the relationship between the lag of the actual volume of output from potential and the level of cyclical unemployment. This dependence is called "Okun's Law".
The formula for the GDP gap is written on the left side of the equation. On the right-hand side, u is the actual unemployment rate, u * is the natural unemployment rate, therefore (u - u *) is the cyclical unemployment rate, ?? is the Okun's coefficient (??> 0). This coefficient shows how many percent the actual volume of output is reduced in comparison with the potential one (i.e., how many percent the lag is increasing), if the actual unemployment rate increases by 1 percentage point, i.e. it is the coefficient of sensitivity of the GDP lag to changes in the level of cyclical unemployment. For the US economy in those years, according to Okun's calculations, it was 2.5%. For other countries and other times, it may be numerically different. The minus sign in front of the expression on the right side of the equation means that the relationship between actual GDP and the level of cyclical unemployment is inverse (the higher the unemployment rate, the lower the actual GDP compared to potential).
The lag of the actual GDP of any year can be calculated not only in relation to the potential volume of output, but also in relation to the actual GDP of the previous year. A formula for such a calculation was also proposed by A. Oaken:
where Yt is the actual GDP of a given year, Yt - 1 is the actual GDP of the previous year, i.e. on the left side of the equation, the formula for GDP lagging by years is written, u t is the actual unemployment rate of a given year, u t - 1 is the actual unemployment rate of the previous year, 3% is the growth rate of potential GNP due to:
a) an increase in the population, b) an increase in the capital-labor ratio, and c) scientific and technological progress; 2 is a coefficient showing the percentage of actual GDP declines when the unemployment rate rises by 1 percentage point (meaning that if the unemployment rate rises by 1 percentage point, actual GDP falls by 2%). This coefficient was calculated by Okun based on the analysis of empirical (statistical) data for the American economy, so it may be different for other countries.
State policy to combat unemployment
Since unemployment is a serious macroeconomic problem and an indicator of macroeconomic instability, the state is taking measures to combat it. For different types of unemployment, since they are due to different reasons, different measures are used. Common to all types of unemployment are measures such as:
- payment of unemployment benefits;
- creation of employment services (employment offices).
Specific measures to combat frictional unemployment are:
- improvement of the system for collecting and providing information on the availability of vacancies (not only in this city, but also in other cities and regions);
- creation of special services for these purposes.
To combat structural unemployment, the following measures are used:
- creation of state services and institutions for retraining and retraining;
- assistance to private services of this type.
The main tools to combat cyclical unemployment are:
- pursuing a countercyclical (stabilization) policy aimed at preventing deep recessions in production and, consequently, mass unemployment;
- creation of additional jobs in the public sector of the economy.
Instability is also reflected in fluctuations in employment, including unemployment.
Unemployed is considered a person who wants and can work, does not have a job, but is looking for it.
Unemployment is a socio-economic phenomenon in which part of the economically active population (labor force) is not employed in the production of goods and services.
There are several approaches to determining the causes of unemployment:
At the end of the 18th century. English economist - priest Malthus explained unemployment by demographic reasons, as a result of which the rate of population growth determines the rate of growth of production.
In the 19th century. K. Marx noted the change in the ratio between the cost of means of production and the cost of labor power in the course of scientific and technological progress as the cause of unemployment. As a result, there is a relative lag in the growth of demand for labor from the rate of capital accumulation. Simultaneously, K. Marx considered the cyclical nature of the economy as the cause of unemployment.
For a long time, the theory of the voluntary nature of unemployment prevailed in Western economic literature. Its forced character was justified in the 30s of the 20th century. J. Keynes. He deduced unemployment from insufficient aggregate demand.
IN and dy unemployment.
1) Friction bezra b father includes workers who are looking for a job or waiting to get one in the near future. This is the time between dismissal from one job and admission to another. Frictional unemployment is short-lived and always exists. Its reason is the natural movement of labor resources between firms, industries, regions. Consequently, frictional unemployment is inevitable. To some extent, frictional unemployment is desirable. Employees change jobs in an effort to improve their position: to get a promotion, a higher salary, more interesting or more convenient work; in any case, frictional unemployment contributes to an increase in the income of hired workers, a more rational use of resources and, consequently, an increase in real GNP.
2) Structural, it is caused by the action of scientific and technological progress and structural shifts in the economy. Under the influence of scientific and technological progress, some industries die off, at the same time new industries and industries appear. The structure of labor demand is changing accordingly. Structural unemployment can arise from territorial imbalances. For example, Kuzbass is a region where traditionally male jobs have always been more than female ones. In any case, the labor force cannot react quickly to changes in demand, and its structure does not correspond to a completely new structure of jobs, so unemployment arises. Although frictional and structural unemployment are similar, there are some significant differences between them.
One is that the “frictional” unemployed have the qualifications, skills, and training that business requires; “Structural” unemployed cannot get a job without training, additional training, or even a change of residence. In addition, frictional unemployment is shorter (one to three months), structural unemployment lasts from one month to a year and is considered more serious.
Economists consider frictional and structural unemployment to be inevitable. Therefore, full employment does not mean an absolute absence of unemployment. Concept full employment includes, in addition to the employed population, also the "frictional" and "structural" unemployed. The unemployment rate at full employment is called natural rate of unemployment. The real volume of GNP created under conditions of full employment is defined as potential GNP or production potential of the economy. The natural unemployment rate is approximately 5-6% of the labor force. Natural unemployment ensures the revival of effective growth and economic stability.
3) Cyclical unemployment - the result of recession and depression. With a decrease in aggregate demand, employment decreases, and unemployment grows and covers all sectors of the national economy. Unlike other types of unemployment, it is characterized by absolute excess the number of unemployed over the number of job vacancies. Cyclical unemployment can exist in latent and overt forms. Hidden form - shortening of the working day or working week, compulsory unpaid leave. Open form means the dismissal of an employee, a complete loss of work and income. In full employment, cyclical unemployment is zero.
4) Seasonal unemployment - a consequence of seasonal fluctuations in the demand for labor. It is due to the peculiarities of production in agriculture and forestry, fishing, construction.
5)Long-term unemployment - the result of overpopulation, surplus labor. It covers the most unskilled workers and can last for years.
Measuring unemployment. So that the state can conduct effective economic policy, it is necessary to assess the size of unemployment, determine its level and duration.
To determine the number of unemployed, the entire population of the country is divided into:
· Economically active population (labor force) - this is the part of able-bodied citizens who offer labor for the production of goods and services.
· Economically inactive population - full-time students, pensioners, disabled people, desperate to find a job; those who do not need to work, etc.
· Unemployed - persons who do not have a job, looking for it, ready to start work, or studying at an employment center.
To determine the size of the labor force, it is necessary to subtract the economically inactive population from the total population. Thus, the economically active population includes the employed (full and part-time) and the unemployed who have this status officially.
Duration of unemployment - the time during which a person is out of work.
The consequences of unemployment. Are quite obvious economic costs unemployment. They are expressed in the lag of the actual volume of GNP from its potential value. The backlog is calculated based on Okun's Law. Okun's law establishes that if the actual level exceeds its natural level, then the real volume of GNP lags behind the potential GNP by 2.5%.
Social implications unemployment is expressed in the loss of qualifications of the unemployed labor force, the disintegration of moral principles and morals, in acute social and political conflicts, contributes to the growth of crime, and undermines the mental health of citizens.
Unemployment is a must market economy... Manifesting through the labor market, unemployment is still not the result of the functioning of the labor market alone. Unemployment is of a general economic nature, being a consequence of the functioning of the entire economic mechanism, because the labor market is not an isolated system of social labor relations, it is organically included in the system of all market relations, and the demand and especially the supply of labor are formed due to economic and non-economic factors. The labor market and the proportions between demand and supply of labor generate employment, not unemployment. Unemployment is, as it were, the “wrong side” of employment; it is influenced by factors other than those that shape the population's employment. Nevertheless, unemployment is always viewed in the context of employment: an increase in employment decreases unemployment, and a decrease in employment increases unemployment.
Unemployment - this is a phenomenon in the economy when a part of the economically active population is unemployed.
Unemployed - this is someone who, given the current working conditions and wages, does not have a job, can work and is looking for a job.
From a macroeconomic point of view, unemployment reflects the quantitative and qualitative mismatch in the labor market between the relatively large supply of labor and the demand for it; it is always underutilization of the labor potential of society, the total labor force as a factor of production.
Foreign economists of different schools and trends have long been trying to identify the causes of unemployment. In the West, the study of unemployment problems peaked during the Great Depression, which refuted the classical view of unemployment as a temporary phenomenon, automatically eliminated by the market equilibrium mechanism. Foreign economists have never denied the existence of unemployment in general; moreover, they believe that a certain level of unemployment is vital due to the cyclical nature of the development of a market economy and call it natural, or normal, unemployment.
There are different types of unemployment: frictional, structural, seasonal, and cyclical. The features of the manifestation of each of them are due to the reasons for their occurrence. Frictional unemployment caused by the natural (normal) desire of a person to look for more profitable and interesting areas of application of his workforce. This is unemployment "between jobs", when a person has left his previous job and is in search of another (the search process is not instantaneous, but is associated with a certain waiting time). The reasons for frictional unemployment are associated with the desire of a person to improve working conditions, increase wages, get away from conflicts in the team, move to a new place of residence, just change jobs to maintain vitality, performance, psychological balance (psychologists recommend changing jobs at least six times in a lifetime , however, this trend has national characteristics). Frictional unemployment is always short-term and voluntary, in contrast to involuntary unemployment, in which an employee can and wants to work at a given wage level, but cannot find it. However, the voluntariness of frictional unemployment is only legal (legal), but not economic in nature. It is the economic reasons (poor working conditions, low wages, pressure from the administration, etc.) that force the employee to temporarily join the ranks of the unemployed. In Russia, frictional unemployment is, as a rule, not voluntary, but forced economic in nature; often not recorded, since the break in work is one or two months, which for many people is not a reason to contact the employment service.
Structural unemployment belongs to the category of "normal", as it is caused by the need for structural changes in the economy, the emergence of new industries and industries against the background of the gradual stagnation of old ones. Structural changes in the economy are of a long-term nature, which is reflected in the duration of structural unemployment, which arises among those people whose profession and qualifications are outdated and do not meet the requirements of new jobs. Structural unemployment also includes technological unemployment, which is caused by the improvement of the technical level of industries and industries. The specificity of the Russian economy in recent years is that structural changes are very rarely associated with technological changes (with the exception of the computerization of managerial and banking functions, which does not require retraining, but only additional skills to the main profession). The backbone of structural Russian unemployment is made up of people not with outdated professions, but with outdated methods of work and way of thinking, despite the fact that structural changes in Russia are associated with the replacement of market inefficient or non-market spheres of activity with highly profitable and profitable ones, which requires new knowledge and new thinking. Territorial structural inconsistencies can also arise.
Cyclical, or demand-deficient unemployment occurs when there is insufficient aggregate demand, is caused by a decline in production and a decrease in consumer demand due to a drop in household income. The professions and specialties of the unemployed are not so much outdated as they simply cannot be used due to the uselessness of a part of the labor force. IN Russian economy it is difficult to draw a clear line between structural and cyclical unemployment. If in Western countries the basis of unemployment is its frictional and structural (technological) subspecies, then for Russia the main problem is cyclical unemployment with structural elements in the form of the unnecessary part of the labor force for transition economy(and not for the economy in general).
Natural and normal unemployment for both developed countries and for Russia is seasonal unemployment. It is typical for agriculture, tourism, some industries (fur, fish, whaling, picking mushrooms, nuts, berries, herbs, etc.); caused by natural factors and is fairly easily predicted in those regions where these types of economic activities prevail.
Thus, unemployment can be caused by various reasons - a decline in production in the economy (cyclical), natural factors (seasonal), structural changes in industries (structural, technological), imperfection of information on the labor market (frictional).
The combination of reasons causing a particular type of unemployment forms the overall unemployment rate in the country, which may differ from real indicator unemployment in the labor market. In this regard, in practice, the concept of unemployment is concretized using various criteria for its classification (Fig. 2.15).
Specifying unemployment according to the selected criteria is important in the study of problems arising from unemployment, as well as for the development of a system of social protection of the unemployed and ways to minimize unemployment. A special problem for the development of measures of passive and active employment policy and reducing the unemployment rate is the reliability of determining the number of unemployed. Almost all countries today use the standard methodology of the International Labor Organization (ILO) to determine the number of unemployed. This technique is based on three criteria of unemployment: 1) lack of work or self-employment;
Rice. 2.15.
2) willingness and ability to work at a given time; 3) the implementation of practical steps to find a job. In Russia, determine real level unemployment is quite difficult, firstly, due to the ambiguity of the criteria for unemployed status (for example, is it possible to consider an involuntarily part-time employee unemployed and what should be the duration of the “out of work” and “job search” state to classify a person as unemployed); secondly, due to the registration approach to the procedure for obtaining unemployed status (a person must register with the Employment Service, pass a test for compliance with certain conditions, and persons already recognized as unemployed should not reject job offers, and the unemployment benefit they receive decreases with an increase experience of unemployment).
These factors play down the real unemployment rate. Periodic household surveys conducted by the Federal State Statistics Service since 1992 provide a more complete picture of labor market processes, since they are conducted in all regions of the Russian Federation, cover the entire population of the country on the basis of a sample observation method, all spheres of economic activity, all sectors of the economy and all categories of workers, including self-employment, unpaid family workers, temporary workers and part-time workers.
The Household Survey is the only data source that brings together and measures employment, unemployment and economic activity. The data obtained by the method of expert polling of the population increases the real level of unemployment at least three times in comparison with the officially registered one. The survey programs are carried out according to the recommendations of the ILO, which ensures international comparability of statistical indicators.
The indicator "unemployment rate" (UB) is calculated as the ratio of the number of unemployed (U) to the entire economically active population (L), where L = E + U, and E is the number of people employed, i.e. UB = U / L.
The indicator "prevalence of unemployment" characterizes the total number of persons who had the status of unemployed in a certain period, regardless of whether they retained this status by the end of the period or not. The total number of persons is determined as the sum of those registered at the beginning of the period and recognized as unemployed in this period. Statistical reporting and expert surveys make it possible to determine the prevalence of unemployment both in general and for individual socio-demographic groups (men, women, youth, rural and urban residents).
The indicator "movement of the unemployed" is characterized by a system of indicators: 1) how many new persons are registered; 2) how many persons had unemployed status at the beginning of the period; 3) how many persons have been removed from the register, including employed, registered for early retirement, removed for other reasons; 4) how many unemployed were registered at the end of the period.
The indicator "duration of unemployment" characterizes the average duration of job search by persons with the status of unemployed (at the end of the period under review), as well as those unemployed who were employed in this period. When analyzing unemployment, indicators of its duration are of particular importance. The average duration of unemployment and the proportion of the unemployed, long-term unemployed, allow us to judge the type of unemployment - frictional (fluid), cyclical (chronic).
The unemployment rate is a social indicator of economic development, and as a socio-economic phenomenon can be considered in terms of stock and flow. The stock is the number of unemployed (10 at a given time. The flow is a characteristic of the dynamics of the unemployed, movement in and out of the state of unemployment. The indicators of the flow of unemployed are associated with the inflow into unemployment (D) and the outflow from unemployment (O). In general, there are six main flows , which characterize the state of the labor market and the level of unemployment (Fig. 2.16): from employed to unemployed, and vice versa, from economically inactive to employed, and vice versa, from unemployed to economically inactive, and vice versa.
Rice. 2.16.
Let's denote these streams:
- o b - the proportion of employees who leave the labor force;
- o h - the proportion of those who move from the economically inactive population to the employed;
- o с - the share of the unemployed who leave the labor force;
- o g - the proportion of those who move from the economically inactive population to the unemployed;
- o s is the proportion of those who lose their jobs and become unemployed;
- o f is the proportion of the unemployed who find work.
Thus, the unemployment rate is a function of six streams (directions of movement):
, (2.18)
where the sign above the variable means its direct or inverse relationship with the unemployment rate.
Unemployment indicators include the amount of unemployment benefits, which is differentiated depending on the category of citizens recognized as unemployed. The allowance is paid:
- 1) persons dismissed from enterprises for any reason (except for dismissal of their own free will) and who have had last year before the start of unemployment, at least 12 calendar weeks (three months) paid work. The amount of the benefit is determined according to the following formula: during the first three months at the rate of 75% of the average earnings for the last three months at the last place of work, during the next four months - 60% of the same average earnings; later (five months) - 45% of average earnings. The total duration of the benefit payment is 12 months of unemployment. Restrictions on the amount of unemployment benefits have been introduced - it must be at least 20% of the budget living wage(BPM) by region and not higher than the BPM itself;
- 2) persons who did not have 26 calendar weeks of paid work during the year before the start of unemployment, as well as persons who are looking for work for the first time or who wish to resume labor activity after a long (more than one year) break - the allowance is paid at least 20% of the BPM in the region;
- 3) the unemployed, studying in the directions of the employment service with the payment of scholarships during the period of study in the amount of 75% of average salary for the last three months of work; the amount of unemployment benefits for this category of persons is 20% of the BPM in the region.
The "hidden unemployment" indicator is not included in the overall unemployment rate. federal Service state statistics indirectly studies the scale of hidden unemployment, using the reports of enterprises, examining the forms of hidden unemployment - the excessive number of employees; the number of those employed on a part-time basis and who want to go to full-time, but who do not have such an opportunity due to the economic situation of the company; the number of people on administrative leave without pay, on long leaves with minimum size wages (minimum wages); the number of persons idle due to the lack of material and technical resources. Thus, in Russian conditions, hidden unemployment is a situation when workers, without formally breaking off labor relations and being considered employed, do not have a job and do not receive a salary or work part-time (day, week). IN international practice such a situation is called under-employment, and hidden unemployment consists of people who are not part of the economically active population at a given time, but would like to enter the labor force if the job provided to them is suitable for them.
The indicator "structure of unemployment" characterizes the unemployed by sex, age, educational level, professional status, social characteristics (workers, employees, specialists), by the level of income and security, for reasons of dismissal. The analysis of the structure of unemployment is carried out on the basis of a combination of statistical, operational and sociological research methods. The result of the analysis can be the development of a socio-demographic portrait of the unemployed.
The question of the socio-economic consequences of unemployment occupies a special place in the theory of unemployment. Unemployment primarily means underutilization of production and human capital society; it turns into a loss of national product for the country and national income... If the economy cannot create enough jobs for everyone who is willing and able to work, the potential production of goods and services is lost forever. In non-production, the economic costs of unemployment are manifested. The difference between the actual volume of the gross national product (GNP) and the potential that could have been created, but not produced, is usually called the lag in the volume of GNP. A. Okun's law describes mathematically the relationship between the growth of unemployment and the lag of the actual GNP from the potential. Its law states: if the actual unemployment rate exceeds the natural level by 1%, then the GNP lag is 2.5%. In this law, the fundamental point is the level of unemployment, which is accepted by society as natural or normal (and it, as you know, consists of structural and frictional unemployment). The natural level of unemployment is considered to be the maximum permissible, because it achieves an equilibrium of factors that increase market prices and wages. As the market economy develops, the natural rate of unemployment rises. In Western countries in the 70-80s. XX century. the natural rate of unemployment was 3-4%, today 5-6%. In Russia, this rate is difficult to determine due to the absence of stable low inflation and the presence of high hidden unemployment.
The extra-economic costs of unemployment lie in the plane of social, psychological and political problems. They are associated not only with an increase in social tension in society, but also with possible change the country's political course in the direction of departure from economic (market) reforms. Negative social consequences unemployment is associated with a decrease in the living standards of the unemployed, as well as the level of wages of employees due to increased competition in the labor market; with an increase in the tax burden on the employed due to the need for social compensation and material support for the families of the unemployed; with complete or partial loss of qualifications of persons who remain unemployed for a long time, as well as with an increase in society's costs for its restoration; with the growth of crime, with the moral and psychological degradation of persons who have been unemployed for a long time. Mass unemployment leads to an increase in suicide, mental disorders, mortality from cardiovascular diseases. Unemployment increases the stratification of the population in terms of income, leads to marginalization (from the Latin marginalis - located on the edge) of certain segments of the population and social apathy (inactivity).
Main directions public policy promotion of employment of the population and its protection from unemployment are presented in Fig. 2.17.
The most promising areas for regulating employment and minimizing unemployment are active economic methods using tools to stimulate investment activity, support small businesses and self-employment, professional training and retraining of personnel. The main tactical task is to minimize unemployment, halt its growth while providing the unemployed with acceptable social guarantees and support.
Introduction ………………………………………………………………………… 3-4
Chapter 1. Basic concepts and characteristics of unemployment ……………… ... 5-7
Chapter 2. Types of unemployment ……………………………………………… ..8-13
Conclusion ……………………………………………………………… ......... 14
List of used literature ………………………………………… ... 15
Introduction
Downward social mobility has acquired a mass character in modern Russian society. Its most characteristic manifestation is unemployment .
Mass poverty and social insecurity of broad strata are our reality.
Unemployment is a macroeconomic problem with the most direct and powerful impact on everyone. Losing a job for most people means a lower standard of living and causes serious psychological trauma. Therefore, it is not surprising that the problem of unemployment is often the subject of much discussion and research.
In our country, the problem of unemployment has not been scientifically studied for a long time, since it practically did not exist in the conditions of a totalitarian society. However, in recent years, works have appeared containing representative data that allow one to argue that the social mobility of people who have lost their jobs "is predominantly of a top-down character 1".
Currently, the topic of unemployment is very relevant, because unemployment causes considerable damage to the vital interests of people, preventing them from applying their skills, in the kind of activity to which a person can most express themselves, or deprives them of such an opportunity, which is why people endure severe psychological stress.
A lot of works have been written about the problem of unemployment. The most significant researches belong to: B.M. Genkin, G.M. Gukasyan, A. Dadashev, R.I. Kapelyushnikov, S.A. Kuzmin, E.E. Nemeryuk, V.I. Plaksya, I. Soboleva, Z. Khotkina. Reasoning, opinions, conclusions about this problem from different authors are similar, there are - different, sometimes - mutually exclusive. Nevertheless, they complement each other, creating a whole and complete picture in my consciousness.
Chapter 1. Basic concepts and characteristics of unemployment.
The development of the economy is characterized by how efficiently the available resources are used, and, above all, the labor force. Maintaining employment is the most important goal of economic policy. The market economy is characterized by a certain level of unemployment, although the number of unemployed fluctuates from year to year. J.M. Keynes believed that under capitalism there is no mechanism that characterizes full employment, the economy can be balanced with a significant level of unemployment.
The labor market (labor force) is an important and multifaceted sphere of the economic and socio-political life of society. In the labor market, the cost of labor is assessed, the conditions of its employment are determined, including the amount of wages, working conditions, the possibility of obtaining an education, professional growth, job security ...
The labor market reflects some trends in the dynamics of employment, its basic structures, that is, in the social division of labor, labor mobility, the scale and dynamics of unemployment.
Part-time employment is a situation in which the work performed does not require the full use of the qualifications and professional training of the individual, does not meet his expectations and does not allow him to receive the same salary that he could have, performing the work (and to the extent) for which could qualify.
Full employment is the provision of professional work that brings income to the individual and a decent existence for him and his family. Full employment presupposes the creation of such living conditions in which every able-bodied person is given the opportunity, if he wishes, to be employed or unemployed. Full employment does not mean that the entire working-age population of working age must necessarily be employed. Due to a number of circumstances, certain able-bodied persons may not participate in the labor process (women caring for children; people who do not work because they want to change their profession, etc.). Full employment is achieved when the demand for labor coincides with its supply, which is a rather rare event in a market economy.
In the economic and social literature, various terms are used to define the concept of “unemployment”:
Unemployment is a socio-economic phenomenon in which part of the labor force (economically active population) is not employed in the production of goods and services. The unemployed, along with the employed, form the labor force of the country 2.
Unemployment is a phenomenon in the economy in which a part of the economically active population who wants to work cannot use their labor force 3.
An unemployed person, as defined by the ILO (International Labor Organization), is an individual who:
1) does not have a job at the moment;
2) makes concrete and active attempts to find a job;
3) is currently ready to start work 4.
In real economic life, unemployment appears as the excess of labor over the demand for it. The unemployed, according to the statistics of many developed countries, are those who are not employed at the time of the survey on their employment status, who have tried to find a job in the previous four weeks and are registered with the labor exchange.
The duration of unemployment is an indicator that characterizes the average duration of job search among persons with unemployed status at the end of the analyzed period.
Chapter 2. Types and forms of unemployment
Modern economists regard unemployment as a natural and integral part market economy. In this regard, much attention is paid to the analysis of the types of unemployment. The criterion for differentiating the types of unemployment, as a rule, is the cause of its occurrence and the duration (stability). Usually there are five types of unemployment: frictional, structural, cyclical, forced, voluntary; hidden, seasonal is also mentioned.
Frictional is unemployment caused by constant changes in the allocation of society's resources between the types and spheres of production of goods and services. These changes change the requirements for qualifications, knowledge, skills. As a result, the employer does not find the employee he needs, and the employee does not find the employer, although the employee retains sufficient qualifications to perform work that is no longer required by society. Today, frictional unemployment is considered the price that society must pay to maintain the efficiency of the economy, for the constant renewal of production to please the changing demands of citizens. The main symptom of such unemployment is short duration. And therefore frictional unemployment is a phenomenon that is not only impossible to eliminate, but also impractical. “This type of unemployment is natural in its content” 5.
To some extent, this unemployment is desirable as many workers move from low-productivity, low-paid jobs to higher-paid, more productive jobs. This means higher incomes for workers and a more rational distribution of labor resources. More difficult is the assessment of structural unemployment.
Structural unemployment is essentially a deepening of frictional unemployment. Over time, important changes take place in the structure of consumer demand and in technology, which, in turn, change the structure of the total demand for labor. Due to such changes, the demand for some types of professions decreases or even stops altogether. The demand for other professions, including new ones, is increasing. Unemployment arises as the labor force responds slowly to this change and its structure does not correspond to the new structure of jobs. In other words, "structural unemployment is generated by the impossibility of employment due to differences in the structure of labor supply and demand in the labor markets of various professions." 6 “In Russia, in the context of the transition to a market system, there is an obvious surplus of specialists-economists, whose knowledge is outdated, however, the demand for accountants is steadily growing” 7.
The difference between structural and frictional unemployment is very vague. The essential difference is that the “frictional” unemployed have skills that they can sell, while the “structural” unemployed cannot immediately get a job without retraining.
If we are talking about the systematic release of employees of enterprises who must curtail their activities due to its technological or economic inefficiency, due to the fact that scientific, technical and social progress requires a restructuring of economic life, then this kind of release of labor should be considered, of course, a positive process. since this release of workers in some areas is always accompanied by the parallel appearance of a significant number of job vacancies in new industries and spheres of activity generated by scientific and technological development. However, all this is embodied in reality only under the condition that socio-economic relations operate in society that ensure flexible employment, the mutual correspondence of the structures of the labor force and production, despite the fact that the restructuring of the employment structure is not compulsory, but based on the free access of each worker to the system of retraining, obtaining additional education, changing the place of work, residence, and so on. Meanwhile, in the specific conditions of a transitional economy, frictional, structural unemployment takes, as a rule, irrational forms, the closure of enterprises proceeds much faster than the creation of new jobs in promising industries, and is aggravated by an outrunning recession in areas that, on the contrary, deserve the greatest development ( high tech, high-tech production) and require skilled labor. As a result, today in Russia engineers and scientists are retraining into salesmen and loaders.
Another classic form of unemployment is cyclical unemployment. . It is caused by a decline in production during an industrial crisis, depression, that is, the phase economic cycle, which is characterized by insufficient total or total costs. When the aggregate demand for goods and services decreases, employment decreases and unemployment rises. For this reason, cyclical unemployment is sometimes referred to as demand-side unemployment. With the transition to recovery and recovery, the number of unemployed usually decreases. Cyclical unemployment is a negative economic phenomenon. Its presence shows that the economy is not functioning at the full employment level, and, therefore, the potential level of GDP is not reached.
Another type of unemployment is voluntary unemployment. It exists, as a rule, if there are unoccupied places. This means that “the workers are either not satisfied with the size of their wages, or the work itself is not prestigious, hard, dirty, that is, the workers are not satisfied with the working conditions” 8. Voluntary unemployment is caused by the fact that in any society there is a stratum of people who, due to their mental makeup or for other reasons, do not want to work. It is well known in our country that efforts to forcibly accommodate the so-called “homeless people” have not led to a reorientation of this category of the population.
Forced unemployment occurs when wages rise above the equilibrium point as a result of government regulation and the struggle of trade unions. In this case, entrepreneurs are forced to reduce the hiring of labor due to the high level of wages. The need to reduce the number of hired labor arises from the competition, which is dictated by the need to reduce costs.
Seasonal unemployment is associated with unequal volumes of production performed by some industries in different periods of time, that is, in some months the demand for labor in these industries increases (and, therefore, unemployment decreases), in others it decreases (and unemployment increases). This type of unemployment is typical for the tourism business, agriculture, some trades, and the construction industry. Seasonal unemployment is often referred to as frictional unemployment. nine
Finally , hidden unemployment , which is typical for the domestic economy. Reasons for hidden unemployment at Russian enterprises can be divided into two groups: the reasons why company managers do not go for mass layoffs of workers, and the reasons why employees themselves do not leave their enterprises, although earnings often barely reach the subsistence level, and wages are delayed for months.
The first group of reasons for the persistence of hidden unemployment includes the following points. First, even in the context of a drop in production, company managers are trying to retain staff for the future by introducing part-time employment, paid (and unpaid) vacations. Secondly, the retention of personnel gives hope for financial support state. Thirdly, often firms simply do not have the funds to pay redundant workers benefits and wages for the period of employment in accordance with labor legislation. Therefore, layoffs occur, as a rule, with the stamp "of their own free will," provoked by ever worsening working conditions and low wages. A few years ago, at the first stage of privatization, enterprises retained their states for the purpose of corporatization: as you know, initially corporatization was carried out by labor collectives. However, by now this reason for the retention of frames has disappeared.
The second group of reasons for the persistence of hidden unemployment
associated with the reluctance of workers to leave their former place of work, even in spite of the miserable wages. First, in small settlements people simply have no other opportunity to find work. Secondly, for the older age group of the able-bodied population, it is very important to have continuous work experience in order to receive pensions. Third, unemployment benefits, even if they can be obtained, do not compensate for the loss in wages. Fourthly, in the minds of workers, such a factor as employment stability very often prevails. Despite the fact that many people earn extra money in the shadow economy, as well as in personal subsidiary plots, they do not lose touch with their main place of work, voluntarily preferring part-time employment.
Thus, in contrast to economically developed countries, the persistence of hidden unemployment in Russia is associated not with the active regulatory position of the state and trade unions, but rather with the absence of such against the background of a crisis in production. 10
Unemployment is a characteristic feature of the market economy. It must be placed within a certain framework, within which the regime of optimal growth and the state of economic stability are achieved. 11 The uncontrolled development of this phenomenon can have serious macroeconomic consequences.
CONCLUSION
Unemployment is a phenomenon organically linked to the labor market. According to Russian law, unemployed are citizens who do not have a job or earnings, are registered with the employment service in order to find a suitable job, are looking for a job and are ready to start it.
The material prerequisite for unemployment is the decline in production and structural transformations in the economy. The scale of unemployment is assessed by a number of criteria: registration of the unemployed in the employment service; unemployment and active search for work, regardless of the fact of registration (according to the methodology of the ILO); lack of work, regardless of official employment status (in the case of vacations and part-time work at the initiative of the employer).
The main opportunity to reduce unemployment today is the activation of the state employment policy along with the general improvement of the economic climate in the country. A new active policy on the labor market should be carried out in a comprehensive manner, in several directions at once, and should be oriented towards the long term. It is extremely important to adjust the general direction of the state employment policy depending on the characteristics and prospects of regional labor markets.
List of used literature:
Belova V. L. Introduction to macroeconomics. Unemployment. // Socio-political journal. 1998. No. 1.
Brayer K. H. Unemployment and underemployment. // Sociological research. 1993. No. 10.
Kuzmin S.A. Amusement: Russia's strategy. M. 1997.
I.V. Lipsits Economy. Textbook for 9th grade. general education. Institution
McConnell K.R., Bru S.L. Economics in 2 volumes. M., 1992. Vol. 1.
Nemeryuk E.E. Labor market and social and labor mobility // Study guide for students of the Faculty of Geography. 2003.
Plaksya V.I. Unemployment: theory and modern Russian practice.
"Economics of Labor" ed. Volgina, Odegova. M. 1996.
1 Gimpelson V.E., Magun V.S. Dismissed in the labor market: new job and social mobility // Sociological journal. 1994. No. 1.
2 Brayer KH Unemployment and underemployment. // Sociological research. 1993. No. 10. P.103.
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