Three Types Of Unemployment

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According to Jahoda (1982), the word employment refers to work under contractual arrangements involving material rewards. But, this definition does not represent all forms of work because self-employed person and housewives are also considered as part of the work as well. However, the explanation is in a total opposite way when the term unemployed is defined, in which a person is only considered to be unemployed if and only if he or she is actively seeking for a job and willing to work at the prevailing wage but is unable to find a job (Nazaria Baharudin, 2004). Besides, Nazaria Baharudin also states that unemployment can also be referred to the circumstances of being unemployed as well as the amount of unemployed in the working population.…show more content…
Furthermore, by defining different types of unemployment, it can give us an idea on the reasons why the unemployment occur and the solution needed to overcome it. In general, unemployment can be classified into three categories: frictional, cyclical and structural. The first type of unemployment is frictional unemployment. Frictional unemployment is a type of unemployment within an economy. It refers to the time period between jobs when an individual is searching for or transitioning from one job to another. This type of unemployment is usually faced by fresh graduates because some of them prefer to search for a job that they like and suit their skills. Moreover, when the person is moving to a new city such as from Kuching to Kuala Lumpur, he is considered to be frictional unemployed if the person still finding a job in KL. It refers to the employees that experiencing mismatch between his skills and the job. For example, the mismatch is related to skills, salary, work time, location, seasonal industries, attitude and taste. The individual might choose not to accept the job offer if he or she do not like the job responsibilities and his or her reservation wage is higher than the salary offered. However, this type of unemployment is considered not severe as it just occur temporarily. According to Tucker (2011), frictional unemployment is not the greatest concern for the public to…show more content…
Refer to Table 1, International Labour Organization (2014) found that the highest unemployment rate for women was in 2009 which is 5.1% and the lowest was in 2012 which is 4.3%. The trend was similar for men, the highest was in 2009 which is 5.1% whereas the lowest was in 2012 which is 4%. In 2014, women had slightly higher unemployment rate than men which is 4.4% whereas men is 4.1%. For instance, in Indonesia the unemployment rate for women in May 2013 was 6.3% compared with 5.5% for men. On the other hand, in the Philippines, the unemployment rate for women in July 2013, at 7.2%, was almost similar as that for men (7.3%) (International Labour Organization, 2014). Table 3 and 4 present tables on the percentage of Malaysia unemployment rate according to gender from 2008 to 2013. Department of Statistics (2014) found that the unemployment rate for women was steadily higher than men from the year of 2008 to 2013. The unemployment rate for women was slightly declining from 3.7% in 2008 to 3.4% in 2013. Men experiences a similar situation as the unemployment rate declines slightly from 3.2% in 2008 to 2.9% in 2013. This shows that men had lower unemployment rate than female in 2013. Hence, the unemployment trends by sex in Southeast Asia and Malaysia was similar as women has higher unemployment rate than
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