unemployment

Unemployment In industrialized countries in which most people can earn a living only by working for others, being unable to find a job is a serious problem. Because of its human costs in deprivation and a feeling of rejection and personal failure, the extent of unemployment is widely used as a measure of workers' welfare. The proportion of workers unemployed also shows how well a nation's human resources are used and serves as an index …

…labor force. The third form of unemployment is cyclical unemployment. Cyclical unemployment results from a general lack of demand for labor. When the business cycle turns downward, demand for goods and services drops. Consequently, workers are laid off. In industrialized countries, with unemployment insurance and other forms of income maintenance, unemployment does not cause as great a hardship as it once did. Measures to stabilize the economy have made economic downturns briefer and less severe.