First, rather redundant population, "superfluous" in comparison with the reached level of national production can become the unemployment reason. This factor of unemployment especially hardly affects in the developing countries.
Secondly, unemployment can be result of changes in economy structure, including – in technologies (structural unemployment). This unemployment is time as on change to old branches and productions (technologies) the new come.
Thirdly, unemployment can was temporary to increase because of natural desires of people to find work "to liking" and with the best working conditions and payments (frictional unemployment). Fourthly, especially strong increase in a rate of unemployment results from cyclic recession in economy (cyclical unemployment). This kind of unemployment is the most dangerous as there is a vicious circle: Production falling – unemployment – reduction of the general level of incomes – aggregate demand decrease – production falling – unemployment etc. Fifthly, in certain cases the unemployment generator can become active interference of the state and trade unions in relations between the hired worker and the employer that leads to market inflexibility of wages and forces businessmen to solve a problem of achievement of the maximum profit by employment reduction. All these reasons of unemployment represent without delay the factors influencing for the size and dynamics of unemployment. The basic sources of unemployment are not market proportions and the conditions developing on a labour market since a labour market only reflects proportions existing at present between demand and the labour offer, but direct sharing in their formation does not accept. These proportions depend on the processes which are outside of the market of work. The market only finds out them, shows unemployment, and does its visible for company.
1.4 Working resources and its classification
Statistics of manpower. Manpower is persons of both sexes who potentially could participate in production of the goods and services. They are significant in the conditions of market economy as integrate such categories, as the economically active population including of taken both unemployed persons, and economically inactive population at able-bodied age. Number of manpower is advanced proceeding from number of able-bodied population at able-bodied age and working persons outside of able-bodied age. The person of work possesses a main role in economic activities development, perfection of its organization and management for the purpose receptions of the greatest return from the creative work. People invent and make instruments of labour and production assets, will organise rational division and labour co-operation at various levels of productive activity, beginning from a job and finishing the organization within the limits of all national economy. The labour as set of physical and spiritual abilities of the person is main productive force of company and constitutes manpower of all enterprises and the establishments belonging to various branches of a national economy. Manpower of each made unit is represented by a part distributed on branches of a national economy of manpower. The statistical characteristic of availability of a manpower of the enterprise, establishment, association, an industry, agriculture, building or transport separately or all economic complex, is the list volume of employment in them workers. The statistics of each branch of a national economy studies the following questions connected with application of a living labour:
1. Statistics of manpower and their use.
2. Statistics of labour efficiency.
3. Statistics of wages.
The statistics of manpower is divided in turn on two parts:
1. To the statistican of a labour – the primary goals is studying of number and structure of workers, studying of change of number of workers; an estimation of security of the enterprise a manpower; studying of job management and use of workers on corresponding qualification; labour discipline studying.
2. To the statistican of working hours - problems is definition of a combined value of fulfilled time; studying of use of working hours, and revealing of losses of working hours
Statistics of structure of manpower. In force of distinction manpower the structure of workers at the enterprise is studied in following directions:
1) on a branch accessory;
2) on work plots;
3) on the functions executed in the course of production.
Depending on a branch accessory of division of the enterprises the staff of primary activity or industrial and production staff and staff of the nonindustrial organizations allocate. On executed functions workers of industrial and production staff are subdivided into six categories: workers, pupils, engineering employees, employees, junior attendants and workers of protection. The most numerous and basic part of structure of workers are workers. To workers, directly linked with production, and also the persons taken by repair and care by the equipment, material delivery persons concern jobs etc. The persons trained on production of this or that trade of workers and receiving wages concern pupils. Engineering employees constitute that part of the enterprise which carry out the organisation and a management industrial and engineering procedure. The workers performing administrative and managerial and economic functions concern employees. To junior attendants carry the workers dealing with service of industrial and non-productive premises. Depending on a role in the course of production discriminate the basic and auxiliary workers. To the cores carry the workers, directly taken by production manufacturing, leading to action machinery and plant. The workers taken by service of the basic workers concern the auxiliary, the equipment, on automation of their work. Working the basic and auxiliary are in turn characterised by degree of mechanisation and automation of their work.
The major statistics of number of workers of the enterprise is the size of average list number of workers. Average list number of workers of the enterprise or the shop, accepted for the partial working day, is estimated so: total number of the man-hours fulfilled by these workers for month, is divided into the established duration of the working day and the number of the fulfilled man-days received thus, divide into number of the working days in a month on a calendar.
For example, for a month in which on a calendar 22 working days, are fulfilled by workers of 12500 man-hours. Then at five-day working week the number of the fulfilled man-days will constitute 1524, as private from division 12500 on 8,2; т.е.12500:8,2. Average list number of the workers accepted for the partial working day (1524:22=69 the people) Will constitute 69 persons. Thus, average list number of the workers accepted for partial working week, advance as the relation of the man-days fulfilled by these Workers to number of the working days in the taken away month on a calendar. And the average list number of workers working full-time is calculated as average arithmetic simple during a certain interval of time (month, quarter, year). We will assume that for the first half of the year average list number of industrial and production staff has constituted 730 persons, and for July - 710, August 700. Average list number of industrial and production staff for January - August (8 months) Will equal: (736х6+710х1+700х1):8=5826:8=728 the economic statistics gives the Basic attention to that part of a manpower which participates in social work. Not less important problem there is a definition of the taken workers on national economy branch. Two groups of a manpower are allocated: taken by physical work and taken by intellectual labour.
Despite the fact that what the labour productivity level increased all over the world over the last 10 years, there are big ruptures in the data on industrial and to developing countries. Though the states of Southern and East Asia, and also the Central and Southeast Europe already catch up with EU and the USA on this indicator, as a whole the situation looks not in the best way. A poverty principal cause in the world the International job management (SQUANDERER) named inefficient use of a potential production of workers.
From the report containing key indicators of a labour market, published on September, 2nd the SQUANDERER it is visible that the USA still is the leader on productivity on one worker following the results of 2006. It is necessary to note essential growth of this indicator for the past of 10 years in East Asia where productivity has increased in 2 times.
Furthermore rupture in productivity between the USA where an added value on one worker (the highest in the world) has constituted $63,885, and other developed economy following States continues to increase: Ireland ($55,986), Luxembourg ($55,641), Belgium ($55,235), France ($54,609).
However Americans work more hours per year, than citizens of other developed countries. If to look at the cost added to one workers in an hour the best labour efficiency in Norway ($37,99), it follow the USA ($35,63) and France ($35,08).
The labour efficiency increase generally grows out more of an effective utilisation of a combination (combination) of work, the capital and technology. Insufficient investments in human and a fixed capital along with application of old technologies can lead to partial use of labour potential in the world. «Huge rupture between productivity and riches is at the bottom for anxiety, — the general director SQUANDERER Juan Somavija has declared. — the Increase in labour efficiency of workers with low yields in the poor countries leads to reduction of essential deficiency of a labour in the world».
In East Asia where the highest growth of a performance level is recorded, the output having on one worker, has grown with 1/8 to 1/5 from level of the industrial countries. In the report it is said also that in South East Asia and in Oceania this indicator in 7, and in Southern Asia in 8 times more low in comparison with the developed states. In Central Asia, Latin and Central America the added value having on one worker, in 3 times is less, than in the EU countries and the USA, and in the countries of the Central and Southeast Europe, in the CIS this indicator in 3,5 times more low. The biggest rupture in comparison with the states with industrial economy is observed in the Central Africa where the performance level in 12 times is less.
Thus, the next publication «Key indicators of a labour market» gives wider submission that in the SQUANDERER name «comprehensible deficiency of jobs» in the world. « Worthy »work ensures necessary productivity to the employer who in turn supports safety precautions, grants fair payment and social protection by worker and to their families, thereby promoting a normal life of company.
Hundred millions men and women work, applying all forces, however conditions in which they work, do not allow them to ensure own families to the most necessary. People continue to live below the poverty line, every day falling all below this line. The general director the SQUANDERER Mr. Somavija has declared necessity of increase in labour efficiency for the poor countries that would help people to earn more.
By data the SQUANDERER of 1,5 billion people in the world — or third of able-bodied population — not completely use the working potential. The problem consists that people in the poor countries want, but has no possibility to work. The income on one member of the family there does not exceed $2, it is catastrophically low figure. More than half of all taken are subject to threat to remain below the breadline. The majority of such people works in shadow economy and does not get practically under any protection. In the Central Africa and Southern Asia of 70 % taken are in similar position.
Besides, in the report the situation which has developed on labour markets is reflected. So, about half of able-bodied population all over the world does not leave on labour markets of the countries. Over the last 10 years the passive behavior on labour markets was more often fixed at women, rather than at men. Only 2 from 10 men do not show any activity while at women such position meets in half of cases.
«Key indicators of a labour market» into which have entered 20 various indicators reflecting a situation which have developed on a labour market with its productivity, working conditions, wages and indemnifications, represent a real picture of that as a whole occurs to a labour in the world.
Chapter 2. Unemployment in practical
2.1 Unemployment Insurance
One government policy that increases the amount of frictional unemployment, without intending to do so, is unemployment insurance (or, as it is called in the UK, national insurance). This policy is designed to offer workers partial protection against job loss. The unemployed who quit their job, were fired for just cause or who have just entered the labour force and not eligible. Benefits are paid only to the unemployed who were laid off because their previous employers no longer needed their skills.
While unemployed insurance reduces the hardship of unemployment, it also increases the amount of unemployment. The explanation is based on one of the Ten Principles of Economics. Because unemployment benefits stop when a worker takes a new job, the unemployed devote less effort to job search and are more likely to tern down unattractive job offers. In addition, because unemployment insurance makes unemployment less onerous, workers are less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.
Many studies by labour economists have examined the incentive effects of unemployment insurance. In one US study, when unemployed workers applied to collect unemployment insurance benefits, some of them were randomly selected and offered each a $500 bonus if they found new jobs within 11 weeks. This group was then compared to a control group not offered the incentive. The average spell of unemployment for the group offered the bonus was 7 per cent shorter than the average spell for the control group. This experiment shows that the design of the unemployment insurance system influences the effort that the unemployed devote to job search.
Several other studies examined search effort by following a group of workers over time. Unemployment insurance benefits, rather than lasting forever, usually run out after six month or a year. These studies found that when the unemployed become ineligible for benefits, the probability of their finding a new job rises markedly. Thus, receiving unemployment insurance benefits does reduce the search effort of the unemployed.
Even though unemployment insurance reduces search effort and raises unemployment, we should not necessarily conclude that the policy is a bad one. The policy does achieve its primary goal of reducing the income uncertainty that workers face. In addition, when workers turn down unattractive job offers, they have the opportunity to look for jobs that better suit their tastes and skills. Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.
The study of unemployment insurance shows that the unemployment rate is an imperfect measure of a nation’s overall level of economic well-being. Most economists agree that eliminating unemployment insurance would reduce the amount of unemployment in the economy well-being would be enhanced or diminished by this change in policy.
2.1 Types of unemployment
There are various kinds of unemployment, each of which is generated by the reasons. Today economists prefer to speak not about unemployment in general, and to allocate its specific kinds:
· frictional
· structural
· cyclic
· seasonal
· voluntary
Frictional unemployment exists even in the countries enduring rough economic blossoming. Its reason consists that to the worker who dismissed from the enterprise or has left it of the own free will, some time to find a new workplace is required. It should suit it both by the nature of activity, and on payment level. Even if in the work market such places to eat, find them it is possible usually not at once. One people feel capable to perform more difficult and highly paid work and search for it, others are convinced that do not correspond to requirements of the workplace and should look for work with payment more low. In a free market society always there is a certain quantity of people which for various reasons search for itself for more suitable work Besides, on a labour market always there are unemployed who search for work for the first time (youth, the women who have grown up children, etc.). Such people also are considered at definition of level of frictional unemployment. These processes promote increase of efficiency of use of labour resources, their more rational distribution. The economic science considers frictional unemployment as the phenomenon normal and not causing alarm. Moreover frictional unemployment is simply inevitable in normally organised economy. Growth of frictional unemployment can cause a number of the reasons: