2.1  Unemployment Insurance

One government policy that increases the amount of frictional unemployment, without intending to do so, is unemployment insurance (or, as it is called in the UK, national insurance). This policy is designed to offer workers partial protection against job loss. The unemployed who quit their job, were fired for just cause or who have just entered the labour force and not eligible. Benefits are paid only to the unemployed who were laid off because their previous employers no longer needed their skills.

While unemployed insurance reduces the hardship of unemployment, it also increases the amount of unemployment. The explanation is based on one of the Ten Principles of Economics. Because unemployment benefits stop when a worker takes a new job, the unemployed devote less effort to job search and are more likely to tern down unattractive job offers. In addition, because unemployment insurance makes unemployment less onerous, workers are less likely to seek guarantees of job security when they negotiate with employers over the terms of employment.

Many studies by labour economists have examined the incentive effects of unemployment insurance. In one US study, when unemployed workers applied to collect unemployment insurance benefits, some of them were randomly selected and offered each a $500 bonus if they found new jobs within 11 weeks. This group was then compared to a control group not offered the incentive. The average spell of unemployment for the group offered the bonus was 7 per cent shorter than the average spell for the control group. This experiment shows that the design of the unemployment insurance system influences the effort that the unemployed devote to job search.

Several other studies examined search effort by following a group of workers over time. Unemployment insurance benefits, rather than lasting forever, usually run out after six month or a year. These studies found that when the unemployed become ineligible for benefits, the probability of their finding a new job rises markedly. Thus, receiving unemployment insurance benefits does reduce the search effort of the unemployed.

Even though unemployment insurance reduces search effort and raises unemployment, we should not necessarily conclude that the policy is a bad one. The policy does achieve its primary goal of reducing the income uncertainty that workers face. In addition, when workers turn down unattractive job offers, they have the opportunity to look for jobs that better suit their tastes and skills. Some economists have argued that unemployment insurance improves the ability of the economy to match each worker with the most appropriate job.

The study of unemployment insurance shows that the unemployment rate is an imperfect measure of a nation’s overall level of economic well-being. Most economists agree that eliminating unemployment insurance would reduce the amount of unemployment in the economy well-being would be enhanced or diminished by this change in policy.

2.1  Types of unemployment

There are various kinds of unemployment, each of which is generated by the reasons. Today economists prefer to speak not about unemployment in general, and to allocate its specific kinds:

·  frictional

·  structural

·  cyclic

·  seasonal

·  voluntary

Frictional unemployment exists even in the countries enduring rough economic blossoming. Its reason consists that to the worker who dismissed from the enterprise or has left it of the own free will, some time to find a new workplace is required. It should suit it both by the nature of activity, and on payment level. Even if in the work market such places to eat, find them it is possible usually not at once. One people feel capable to perform more difficult and highly paid work and search for it, others are convinced that do not correspond to requirements of the workplace and should look for work with payment more low. In a free market society always there is a certain quantity of people which for various reasons search for itself for more suitable work Besides, on a labour market always there are unemployed who search for work for the first time (youth, the women who have grown up children, etc.). Such people also are considered at definition of level of frictional unemployment. These processes promote increase of efficiency of use of labour resources, their more rational distribution. The economic science considers frictional unemployment as the phenomenon normal and not causing alarm. Moreover frictional unemployment is simply inevitable in normally organised economy. Growth of frictional unemployment can cause a number of the reasons:

1) lack of information of people on possibility to find work on the speciality and with arranging level of payment in concrete firms;

2) the factors objectively reducing mobility of a labour. For example, the person has not found work in the city, but cannot move in other city where such work is, because of backwardness of the market of habitation or absence of a residence permit. Such situation is characteristic for Russia that is unprofitable distinguishes a domestic labour market from a labour market of the western countries.

3) Features of national character and a way of life. Frictional unemployment above in those countries which citizens prefer to live all life in the same settlement, that is differ the lowered mobility. At such way of life (characteristic and for many Russians) labour overflows between regions are reduced.

Structural unemployment. The manufacture structure cannot remain invariable. As a result of scientific and technical progress, technological changes, the labour demand structure varies also. The requirement for one kinds of trades is reduced, and other specialities disappear at all. But there is a demand for new trades. Earlier not existing. Such unemployment already where is more painful for people, than frictional.

Occurrence of structural unemployment means that many people should master new trades, to avoid structural unemployment it is impossible. It is connected by that technical progress all time gives rise to the new goods, technologies and even the whole branches (manufacture of personal computers, laser disks and fiber optics, for example, concerns them). As a result the labour demand structure strongly varies. And people with trades unnecessary more in former quantity appear out of work, recruiting of ranks of the unemployed. For example, import to Russia considerable number of personal computers has led to refusal of use of the big COMPUTERS which service needed a considerable quantity of programmers. Together with computers new "generation" of the software products, allowing to communicate with car without the intermediary – the programmer from abroad has come. To keep or get a job, programmers of old school had to be retrained, seize urgently modern languages of programming and new software packages. Changes in demand structure appear today more and more essential. The American experts, making the forecast of development of a labour market in the USA till the end of a century, have found out inevitability of serious changes on it. It has appeared that to 2000г. The number of farmers in the country will be reduced to 900 thousand persons, and the share occupied in the industry will fall from 18 % in 1990г. To 9,7 % to the XXI-st century beginning. The overwhelming part of hired workers will work in any branches of services, including 43 % - in computer science sphere. The number of workplaces for the people owning following specialties will fastest grow:

1) the bookkeeper or the auditor

2) the mechanical engineer

3) the staff nurse

4) the expert in communications of the companies with the public

5) the programmer for personal computers and the computer techniques

6) the therapist specializing on occupational diseases

7) technician on service of medical equipment.

Structural unemployment, at all morbidity, also can not excite the country, but only in the event that total number of empty seats does not concede to number of the people searching for work, though and having other specialities. If in general it is less than workplaces, it means. That in the country there was a third, most unpleasant form of unemployment - cyclic.

Cyclic unemployment is inherent in the countries enduring the general economic recession. In this case the crisis phenomena arise not on separate, and practically in all commodity markets. Difficulties are endured by the majority of firms of the country that is why mass lay-offs begin almost simultaneously and everywhere. As a result total number of free workplaces in the country appears less numbers of the unemployed. In revival and lifting phases there are new working places, and unemployment resolves. Sometimes to a category of the unemployed carry (though and it is not quite lawful) seasonal workers. They remain without work of that some kinds of activity can be carried out only during the certain periods of year. The most typical example is the agricultural workers occupied during the period of harvesting, and in the rest of the time interrupted casual earnings.

Voluntary unemployment is caused by that in any society there is a layer of people which on the mental warehouse or for other reasons do not wish to work. Also it arises in those cases when the worker leaves on own desires if it is dissatisfied with level of payment of its work, working conditions, or any other circumstances. Studying unemployment problems, the economic science has come to a conclusion: frictional and structural unemployment – the phenomena normal and do not represent threat for country development. Moreover, without them development is simply impossible. After all if all workers are occupied how to create new firms or to expand manufacture of the goods which use in the market the raised demand except that, unemployment presence forces people to be afraid of loss of the workplace and induces them to work more производительно and is qualitative. From these positions it is quite possible to name unemployment stimulus to the best work. That is why as full employment in the majority of the developed countries of the world understands absence of cyclic unemployment at existence of unemployment frictional and structural. I.e. when unemployment in the country corresponds to the natural norm. Accordingly, the full employment level is defined by the equation: the Full employment = labour Х (1 natural norm of unemployment). For each country natural norm of unemployment develops in own way, and uniform value for it does not exist. For example, in the mid-seventies the American economists considered that for their country this norm makes an order of 4 %. Today this level has risen to 5-6 % that is connected with change of demographic structure of a labour and институциональными changes. The today's information on the unemployment scales, given by Goskomstat, underestimates an original rate of unemployment approximately in 5 times that creates additional alarm and without that to astable economy of Russia. But level understating, in the majority cases, occurs because of discrepancies in the course of gathering of the information on the unemployed.

The international organization of work (SQUANDERER) had been developed a technique reducing to a minimum of such discrepancy. It consists in the following: data gathering on the basis of monthly interrogations, about 50 thousand casually chosen family economies is made. Questions concern following problems: whether that or other individual had work last week; whether he tried to find work; what is the time it has already spent for employment; it undertook what actions with that end in view. Proceeding their answers to questions, to the unemployed carrying persons is more senior 16 years, which during the considered period: had no work (profitable employment); were engaged active in work searches; were ready to start to work. Not occupied in a social production and not aspiring to get a job persons do not consider at definition of a number of labour (that is economically active population). Many people from this category can work, but do not do it owing to those or other reasons. They are students of day branches, pensioners, housewives. Children aged till 16 years and the prisoners enduring punishment in prison are automatically excluded from a category of economically active population. The special category is represented by military men. The number of the persons consisting on the valid military service, is included into size of a cumulative labour, and at definition of the number of labour occupied in civil sector of economy, this category of economically active population is not considered. That affects in calculation of the general norm of unemployment and norm of unemployment for civil sector. These indicators reflect relative density the unemployed in number of a cumulative labour and a number of labour of the given sector accordingly.

The divergence between sizes constitutes about the tenth share of percent, and in publications there is a last indicator more often. Nevertheless the methodology of the International job management cannot overcome some discrepancies connected with measurement of level unemployment in connection with what official definition of norm of unemployment can be criticized both for reduction of real numbers of the unemployed, and for its exaggeration. One of ways avoidance of ambiguities is comparison official definition of the unemployed with concepts "idle" and "incapable to find work".

"The Unemployed and "idle". In definition practice безработного and taken essentially differ from concepts" working "and" idle ". On the one hand, many working do not get in category taken, for example, housewives. They are considered as taken only when they receive for the work monetary compensation. Besides, the number occupied does not join working children till 16 years irrespective of, whether they receive wages for work or work free of charge. On the other hand, at all each "idle" gets in a category the unemployed. It is possible to carry many people who are not doing anything to them to find to itself new work. Those who are absent during the given moment on a job because of illness or bad weather, and also so named "partially taken" (working incomplete the working days etc. are not considered as the unemployed).

"Unemployed" and "incapable to find work". These similar concepts actually also are only approximate. For example, the people temporarily dismissed from a place of service, and also the works which have found a place get to number of the unemployed and assuming to start to work within a month. Hardly it is possible to tell also about "inability to find work" at those who has left a former place in searches of the best variant.

2.3 Distribution of manpower

Manpower - a part of the population of the country, having physical development, mental faculties and the knowledge necessary for employment by socially useful work. The sizes of manpower depend on a population, a mode of its reproduction, structure on a floor and age. The basic part of manpower of the country is constituted by its population at able-bodied age, and also teenagers and persons of the pension age, capable to work Allocate still other category - the people really participating in production of goods or non-productive sphere, - economically active population. It is important to consider and a parity between an able-bodied part of the population, on the one hand, and idle (children and old men) - with other. It name demographic load. On the average in the world of 100 able-bodied people ensure the earnings of 70 children and pensioners. In developing countries such indicator frequently constitutes 100 on 100, whereas in Japan - 100 on 41. In Russia, Belarus, in Ukraine, in the Baltic States demographic load is approximately equal world average.

The crisis which has begun as bank, by degrees gets into all spheres of economy. Experts of the personnel market notice that the first wave of reductions has already begun. First of all, send in no-charge holidays so-called support staff, differently – the experts attending very wasteful for companies at present to projects with the delayed date received of profit. Reduction cost cutting also has begun, many projects were freezed.


Conclusion

As the major indicator – the indicator of is social-demographic safety the rate of unemployment acts. Unemployment occurrence is connected with development of market relations and, first of all, a labour market. As the material precondition of unemployment slump in production and structural transformations in economy act. Unemployment scales are evaluated on a number of criteria: unemployment registration in an employment service; незанятость and an active search of work irrespective of the registration fact (on methodology the SQUANDERER); absence of work, irrespective of availability of the official status of employment (in case of holidays and the partial working day at the initiative of the employer).

Obviously, the more operative and short-term character is carried by this or that problem of employment, the above probability of use of direct administrative influence. Main strategic targets of regulation of employment should be increase of economic and social efficiency of employment at the expense of change of its structure, forms, creation of conditions for development of a human capital of the country, perfection of economic relations of employment. For this purpose it is necessary to reduce level of redundant employment at the enterprises, flexibly to redistribute liberated workers in other branches and employment kinds.

The care of the state of achievement in the country of the most complete and effective employment as important social warranty for economically active population is the major aspect of state regulation of the labour market which mechanism of formation will be constantly improved with reference to new conditions of development of market economy, structural reorganization of production, formation of effective social policy.


List of used literature

1.  Economics N. Gregory Mankiw and Mark P. Taylor

2.   Economical mentality Heine. P 2002

3.  Aleksey Vojlukov, it is published in «the Business journal Online», on September, 10th, 2007.


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