Why will there always be at least some unemployment? Give an example of a public policy that affects the unemployment rate. Is it positive or negative? Why?
Although it is not preferrable that unemloyment rate lowers to 0% there is always at least some. There are three types of unemployment: cyclical, frictional, and structural.
Cyclical pretty much occurs when a company goes bankrupt, therefore, people need to look for another job. Frictional occurs when someone is not happy at their current job so he/she leaves and starts looking for a different job or people in the process of relocating in a different state. Finally, structural results when there is not much demand from the type of job someone can perform. For instance, a plumber cannot find a job because there is not many job opportunities available.
A public policy that affects the unemployment rate is unemployment insurance. It creates negativity because people are less motivated to work since they are receiving an amount of money while they are not working.
In what ways do unions affect the natural rate of unemployment? How about human resource regulations, such as safety or age-based rules? Do all of these affect the cost of hiring employees? Should the affect of a regulation on employment be considered as a part of the adoption process? Why or why not?
If unions raise the wage and employers cannot pay, then, unemployment will decline.
Refusing to hire an elderly is considered discrimination and its against the law. Human Resource’s regulations affect the cost of hiring employees because it costs money to the company. It also affects because not everyone is in the same age range, and skill set. They have to run a background check, the training process is expensive, etc. It should be adopted because it would be easier for companies.
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