Unemployment and Business Cycles

Globally, there are millions of people in the labor force

It is sad that some of these people become unemployed for one reason or another. Unemployment can be classified into three types. The first form is cyclical unemployment, in which an individual becomes unemployed when the economy is not doing well and is reemployed when the economy improves. As a result, the availability of jobs is entirely dependent on the economy (Burchill 19).

Temporary unemployment is cyclical

Second, there is structural unemployment, which occurs when consumer needs change, affecting the growth or outright shutdown of industries.

Frictional unemployment describes the duration of the initial job and the ability to find another job

These types of unemployment give a vivid description of whether or not an individual is unemployed as a result of factors related to the business cycle, seasonal factors, or technological factors. Unionized employees are protected against the adverse effects of unemployment-related issues. This essay is seeking to analyze the cases of four individuals concerning unemployment scenarios.

Scenario Analysis

In the case of Marcelle, there is a tremendous economic downturn in the economy that has seen her laid off. It suffices to mention that when there are economic challenges, the average factory output decreases (Tatsiramos and van Ours 17). In this case, the company will require less labor. Marcelle is faced with cyclical unemployment since the economy is in a recession. It is worth noting that in times of recession, people cannot easily find jobs because of high unemployment rates and inflation. Additionally, it would be quite easy for Marcelle to qualify for unemployment. Marcelle is actively searching for a job. She is eager and ready to work if the job is available. Marcelle is unemployed not because of her making but due to reasons beyond her means. In other words, it is not the fault of Marcelle that she was laid off. Marcelle can get unemployment benefits if she can prove her point in her case. The issue is that it was not her wish to be laid off but factors beyond her ability.

The case of Dominic is different

He appears like unemployment is facing him when actually; he is the one who pulled out of the labor force. Dominic worked as a hairdresser. Dominic quit his job to move to New York City. It is crucial to point out that whether he already has a new job or intending to search for one in New York City is entirely up to him. Further, Dominic made it cumbersome to apply for unemployment for the apparent reason that he voluntarily left his job to move to New York City. It is vital to point out that Dominic is not actively searching for a job which is a fundamental qualification for unemployment. Dominic can only qualify for unemployment needs when he actively begins to look for work immediately he gets to New York City. Further, Dominic ought to make sure that he can work when gets a job. During the hearing of his case, Dominic will have to convince the jury that the reasons for quitting his job were valid, legitimate and that he still has the desire to work (Weiss27). Therefore, if he argues rightly and takes the right path, Dominic can qualify for unemployment benefits.

During winter, Francine had been working for a ski resort

Now that it is summer, the ski resort has been closed. Francine is planning to apply for the same job at the ski resort in the next winter. Francine is experiencing frictional unemployment. At least for now, Francine has to worry about working until next winter. Additionally, Francine is a part-time worker at the ski resort during winter, and at the onset of summer, she pulls herself out of the labor force. In this situation, Francine is neither unemployed nor employed. Francine will only qualify for unemployment benefits when she actively starts looking for jobs. Further, she should be physically fit to work, willing to work, receive considerable wages during the base period to lay claim for unemployment benefits (Christiano et al. 32). Francine should be totally or partially unemployed to be eligible for unemployment benefits. In the case of Francine, she is partially unemployed because she can work during winter. In fact, she is in a good position or at an advantage to applying for unemployment. However, Francine appears not to be ready to work currently. Due to these reasons, Francine may not qualify for unemployment benefits since she is not searching for a job and also willing or prepared to work in the summer.

Beauvoir worked as a full-time secretary

The boss replaced Beauvoir because of lack of computer skills. As a result, he is faced with structural unemployment. Beauvoir has experienced challenges in securing another job because computer skills are a prerequisite in the job market. Should Beauvoir apply for unemployment, is he likely to qualify because he is structurally unemployed. In fact, he is not the reason for unemployment, but it is technology that has pushed him out of employment. Beauvoir is seriously looking for another job and willing to work should he find one. Another reason for his qualification for unemployment benefits is that he is unemployed. Further, going forward, Beauvoir should work hard to sharpen his computer skills to be able to find a job shortly. Indeed, computer skills are mandatory for almost all tasks. Technology plays a critical part in influencing business functions and the role of employees in an organization. Beauvoir should have also joined a trade union to enhance collective bargaining as far as his employment right is concerned (Burchill 23).

In conclusion

it is apparent that unemployment affects thousands of eligible workers. It is therefore imperative that workers join trade unions to address challenges that they are facing at work such as being laid off. Unemployment is a significant economic problem in the world today. As discussed in this corpus, various unemployment scenarios determine whether individuals can be awarded unemployment benefits by the government. The state has come up with various policies such as unemployment insurance to help the unemployed continue to earn a living without problems.

Works Cited

Burchill, Frank. Labour Relations. Palgrave Macmillan, 2014.

Christiano, Lawrence J., et al. “Unemployment and Business Cycles.” Econometrica, vol. 84, no. 4, July 2016, pp. 1523–69. Wiley Online Library, doi:10.3982/ECTA11776.

Tatsiramos, Konstantinos, and Jan C. van Ours. “Labor Market Effects of Unemployment Insurance Design.” Journal of Economic Surveys, vol. 28, no. 2, Apr. 2014, pp. 284–311. Wiley Online Library, doi:10.1111/joes.12005.

Weiss, Andrew. Efficiency Wages: Models of Unemployment, Layoffs, and Wage Dispersion. Princeton University Press, 2014.