The presence of a certain level of unemployment in a society is normal, since some of its members at this moment are in search of a new place. However, it should be borne in mind that there are different types of unemployment that can have a beneficial or negative impact on society as a whole.
Unemployment and its main types
Unemployment in society is a certain state of the labor market, in which a certain number of the economically active population, that is, people who, by their characteristics, are capable and willing to work, cannot find a paid type of activity. At the same time, despite the presence of the listed general characteristics, these people differ among themselves in the nature of unemployment.
Thus, specialists in the field of labor market research usually distinguish three main types of unemployment. The first of them is structural unemployment, the presence of which is associated with the restructuring of the economy, which may entail a reduction in the demand for specialists in certain industries. The second type of unemployment is cyclical: it is a consequence of the general recession in the economy, which is a consequence of the negative phase of the economic cycle. In such a situation, the demand for specialists in all sectors is reduced. Finally, the third main type of unemployment is frictional unemployment, which arises in a situation when some of the workers in the labor market are looking for a new job. In addition, some experts highlight other types of unemployment, such as seasonal and institutional.
Frictional unemployment
Frictional unemployment is one of the most positive types of unemployment for society, as it is a consequence of the desire of qualified employees to find new uses for themselves. In fact, this is a normal market phenomenon and poses no threat to either employers or employees.
In general, among the components of frictional unemployment, several main components can be distinguished. The first of them is the so-called vertical component, which is formed by workers who are looking for work with higher qualification requirements, higher wages or a higher position. Thus, in this case we are talking about improving their position in the labor market.
The second component of frictional unemployment is the horizontal component, within which the employee changes his previous job to another while maintaining approximately the same level of wages, competencies and positions. The reasons for such a decision may be different, for example, moving to another city, layoff from a previous job, or others.
Finally, the third component of this type of unemployment is people who are looking for work for the first time in their lives, that is, young professionals or workers who enter the labor market after a long break, for example, women after maternity leave. This category of workers replaces those who, on the contrary, leave the labor market due to childbirth, retirement or other reasons.
