Free «Structural or Cyclical Unemployment» Essay Sample

United States of America went through one of the most pressing economical crisis in the year 1929- 1939; this economical crisis was known as the Great Depression. This economic crisis had diverse effects on the economy of United States of America resulting to incidents of inflation, increased unemployment, and fluctuation of commodity prices amongst other economical setbacks. The economic crisis also spread to other countries in the world making the situation in these countries and the world over even worst (Hobijn, 2011).

Unemployment is as a result of the structural unemployment; this is because the advanced technological experiences. In addition, the harsh economic times that are experienced today are forcing the companies to lay off its employees in order to enable them operate. This is a problem that the government will not be able to reduce i.e. the increasing numbers of unemployed citizens in there countries.

Economics expert's main concern is the study of the increasing rates of unemployment in the world just after the Great Depression that occurred in America in the 1930s. Economics experts' aims at evaluating and defining the possible ways in aimed at solving this problem of unemployment in the United States of America and the world over (Hobijn, 2011). The study from economists indicates that the problem of unemployment is here to stay; and these developed countries will not be in a position to solve this problem of unemployment but its rates are expected to increase (Thoma, 2010).



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The paper basically highlights on the two different types of unemployment that affect the world today; precisely after the Great Depression that affected the United States of America in the 1930s. Economic experts claim that the structural unemployment will take a lot of efforts to completely eradicate as the world governments has little ways of controlling the economical dilemma (Weidner, 2011). The Great Depression is explained to be one of the most severe economic crises that quickly spread from 1929 all the way to 1940 in different nations in the entire world. It originated from the United States of America where there was the fall of stock prices that spread drastically to the entirely world. This process had diverse effects in different countries as it introduced increased cost of living, increased unemployment rates, increased taxation rates, drop in prices and profits in companies (locally and internationally). It also contributed to a halt in constructions amongst other negative diverse effects on the economy; including the industry and agricultural sectors. Its noted that in some other countries this Great Depression lasted to the beginning of the Second World War (Mocan, 2010).

Economic experts / annalists claim that the different type of unemployment includes frictional, structural and cyclical unemployment. Therefore all these types of unemployment are as a result of the Great Depression and the increasing Inflation that is being experienced in the world today. Thus these forms of cant be contained that easy this is because of the changing positions of the worlds economic. This paper it evaluates the structural and cyclical unemployment and there effect on the world and how these forms of unemployment can be monitored.

Frictional unemployment is defined as a form of unemployment that is resulted when people are moving or changing there present occupations in order to get better returns from there employment (Beckworth, 2010). The other type of unemployment is the Structural unemployment which is as a result of technical changes such as automation or even a variation of the products that the people want. An example is when there is a decline in the demand of a specific product an example is the decline in the demand of the typewriters as there was an introduction of the printers (Weidner, 2011). Cyclical unemployment is as a result of a change in the business atmosphere that affects the flow of the input thus affecting the normal trend of the business. This will automatically result or force the companies to lay off some of its employees thus resulting to increased unemployment in the countries (Thoma, 2010).

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Earlier in the paper it indicated that the rate of unemployment is on the rise as a result of the countries inability to control the effects of the Great Depression that occurred during the 20th century.

This is because most had predicted that the current unemployment that is being experienced was as a result of cyclical unemployment; where the world economy is affecting the ways in which an organization face changes in the economical sector, unemployment is mainly resulted from changing economic situations of the businesses. But on the other hand the advancement in the technical products have also resulted to unemployment; which to me provides mixed reactions that I tend to believe that unemployment is as a result of either these problems (Hobijn, 2011).

As an accounting expert who plans to venture into the world of jobs one will be faced with a lot of unemployment cases. They will automatically be in the form of structural or cyclical unemployment. It should be noted that these companies in this age and era are faced with a lot of economical problems; in order for these companies to maintain their profits and ensure that they are performing their duties effectively they have to lay off some of there employees in order to be with the required numbers of employees that will ensure that the organizations fulfill there purpose of there operations (Beckworth, 2010).

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The laying off of the employee's results to the structural employment; this is where less skilled employees are replaced with other well trained individuals and machines that can effectively perform the duties effectively. This leaves the government with no choice of what they can do to the unemployed whose numbers is on the increase daily (Mocan, 2010).

As times goes by and new inventions are introduced in the business and other fields; there will be an increase in the numbers of unemployment in the accounting section. This is because man power labor will be replaced with machines that will ensure that all the recording, auditing and calculations are well monitored and entered in the companies databases making human beings less important as all the duties are performed by the programmed machines (Thoma, 2010). The problem of structural unemployment will definitely result to the increase of unemployment; also because the economic situation in the world today is unpredictable this is because of the unpredicted way of the economics of the business market. Thus the companies will want to invest more in the maximization of there inputs but minimize there expenditure. This indeed will result to these companies buying a lot of machines that will be operated with a small number of people; thus the companies will be in a position to operate with a small number of employees who are more productive. This will result to paying less as compared to when there are a lot of employees (Weidner, 2011).


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