(Macro) Episode 19: Types of Unemployment

There are several different types of unemployment, of varying duration and severity (in terms of implications for the economy). This video goes through the types, and addresses why the Macroeconomic goal is "Low Unemployment," rather than "Zero Unemployment."

Category:

Education

Tags:

• economics
• frictional
• structural
• seasonal
• cyclical
• unemployment
• fullemployment
• natural
• rate

[motters2012]

you said here the end that if unemployment rate drops, firms will start to compete for workers by offering higher salaries and more benefits. Which would push prices up (inflation) Why is this the case? wouldn't if unemployment rate drops, supply of labor should increase resulting in lower wages and thus lower prices?

[mjmfoodie]

@motters2012 The unemployment rate is an indicator of what is happening in the labor market, not a causal factor -- unemployment falls when the ratio of those who are not working but are seeking work, over the total number in the labor force, falls. And the fewer people who are seeking work, the more likely you'll be trying to hire someone who already has a job.

[mjmfoodie]

@mjmfoodiesucks Indeed I did, because the world isn't about black and white, or "I'm right and you're wrong." Economics is messy, and it's a lot about the grey areas, pros & cons, costs & benefits -- the answer is typically "it depends," not "my way or the highway."

Please stop filling these areas with your personal diatribe.

[Xyleno1]

Thank you! This is a great teaching tool.

[GSXR750x89]

i love these vidoes.. i have never understood things of this nature and now am fascinated by it....THANK YOU SO MUCH

[rennappu]

Great video!

I love your whole macro economic series if videos.

oh & "mjmfoodiesucks" sucks

[act110mort048]

@mjmfoodiesucks okay fuck you because I learned a lot from mjmfoodie. thanks mjmfoodie, really helped me with my economics class

[DAvonzoAllDay]

a reason for some people for unemployment is the length of this video ;)

[JJTheBigDog]

@mjmfoodiesucks you're stupid!

[hadibohari]

@Denon3333 inflation can also be caused by imported inflation. Not just money supply. Anws, If workers demand higher wages, the cost of production (cop) of firms go up and who other to bear the cost of higher cop of the firms than the consumers ourselves in the form of higher prices of the finalised good, thus causing inflation. I hope that helps you see how increased salaries & benefits of workers eventually lead to inflation. :)

[hadibohari]

thanks for your insightful video!

Helped me alot on understanding the topic of Unemployment in macroeconomics. Gonna use your examples for my exams.

Oh & to mjmfoodiesucks, as an economics undergraduate student myself, i guess you just have to suck it up and accept the fact that economics isn't perfect. It's a subject built so much on assumptions that when u apply em into the real world, it indeed becomes messy. Just face it, if it isn't, the US wouldnt be this so messed up right now. Period.

[rationaldreams]

@mjmfoodiesucks

honestly, mjmfoodie helped me pass first year economics. grow up