There are a different types of unemployment in the economy, each characterising how and why different workers cannot find jobs. Please discuss the following:

1. Define unemployment in your own words and provide your thoughts if you feel the unemployment number is an accurate level of true unemployment. Give reasons why or why not.

Unemployment are persons who are of the age of 15 years or over who currently do not have a job in the labour force but are actively looking. I do not feel the unemployment number is an accurate level of true unemployment. One reason I feel this way is the way our government counts those who are unemployed, and those who are not. For example, in regards to the overall numbers of unemployment, discouraged workers are not counted within this number. I believe discouraged workers are very important to the unemployment rate, because they are able to work, albeit discouraged by certain circumstances.

2. Describe some of the actions (or policy decisions) that governments can do to reduce the level of unemployment?

When looking at the level of employment, we first can look at it from every level: frictional, structural and cyclical. Frictional would be the toughest to combat against as it can deal with many complex issues, such as the individual choosing to quit and look for better work.

Let us jump into structural unemployment, over time new jobs open up that require new skills, and old jobs that require different skills disappear. With this we are left with those who become unemployed because their skillsets no longer match the jobs available. One option for the government is government subsidized retraining programs allowing workers skillsets to be retooled.In order to to combat against cyclical unemployment the government can diversify the amount of work it provides to the populace in order to avoid any pitfalls that appear