Positive Effects Of Unemployment

Unemployment or the unemployment rate is a commonly used tool to gage the well-being and condition of the economy. Unemployment occurs when an individual who is vigorously seeking employment is unsuccessful at finding a job. Calculating the number of individuals who fall within the unemployment category then dividing that number by the total amount of individuals within the workforce will represent the unemployment rate. Economist’s breakdown unemployment into various different classifications such as fictional unemployment, cyclical unemployment, and structural unemployment which further assists in explaining the cause and effect of overall unemployment and how they affect full employment. Frictional unemployment or search unemployment is often considered to be a short-term version of unemployment but is always existing or present. Frictional unemployment can be considered a positive indicator and beneficial of the economy as individuals are seeking superior employment opportunities and flooding the applicant pools with

It does not include productive activity that does not have a market transaction” (Buck, 2008). These activities without a market transaction could be changing your own oil in your car versus paying the dealership for the same service or performing your own landscaping versus hiring a lawn care company. The GDP also does not account of consumer quality of life aspects such as leisure time or how free time is spend; environmental traits such as pollution rate of water, air, ground, and other resources; mental and physical health such as stress and exercise. Additional limitations include transactions that occur outside traditional recorded marketplaces and non-market production such as making your own clothes or growing your own