Types of Unemployment
There are many types of unemployment, one of them is clinical employment is where individuals lose their jobs as a result of the decrease in demand. There is also demand deficient unemployment, which is caused by insufficient demand, which could generate the required level of employment in a country. Structural Unemployment occurs as a result of a decline in industries and changes in the market conditions. One example of structural unemployment occurred in the United Kingdom where the car production declined, and outputs in other areas of the world increased and caused millions to be unemployed in the United Kingdom. Classical employment is another example of unemployment where the cost of hiring employees are too high. In classical unemployment, the workers are not blamed for the high cost of hiring.
Frictional Unemployment
Another type of unemployment is frictional unemployment. The only way to reduce this is providing information about the job opportunities to minimize the search time. The last type of unemployment is called voluntary unemployment. In this kind of unemployment, workers may decide not to participate in the labor market because of high-income tax (Blackstone " Lewis, 2002). This type of unemployment occurs when the wage rate is below the wage necessary for the people to supply their labor. If the labor participation rate increases, the unemployment rate calculated based on the number of people who are seeking work and cannot find the job. If the number of people seeking work increases in a given period irrespective of the number of employed people, unemployment is said to be still high. Different researchers have shown that the job seekers who are affected by the increase in minimum wage re the young job seekers that look for jobs that pay the minimum wages (Greenhalgh, Layard " Oswald, 2004).
Impact of Minimum Wage on Unemployment
Few workers lose jobs when a minimum wage is raised. This is because of the costs associated with the hiring of the workers. The Bureau of Statistics shows that states with minimum wages were at higher risks of unemployment rates than the states with the higher minimum wage. On the relationship between unemployment benefits and market participation of the unemployed, the figures do not give the accurate value of the unemployed people.
References
Blackstone, W. and Lewis, W. (2002). Commentaries on the laws of England. Boston: Beacon Press.
Greenhalgh, C., Layard, R. and Oswald, A. (2004). The Causes of unemployment. Oxford: Clarendon Press.
