UNEMPLOYMENT

WHY?
THE EU-28 UNEMPLOYMENT RATE WAS 10.9 % IN OCTOBER 2013 YOUNG PERSON UNEMPLOYMENT EU-28 AND 24.4 %

1.WHAT IS UNEMPLOYMENT?
Unemployment occurs when a person who is actively searching for employment is unable to find work.

2. Why does it happen? Because the labor market is an imperfect, negotiated and contractual market, also a structured and segmented type of market.

UNEMPLOYMENT IS INEVITABLE IN A MARKET ECONOMY AND IT CAN BE CATEGORIZED IN DIFFERENT TYPES:

1. Voluntary 2.Involuntary structural

- frictional
- cyclical - seasonal

STRUCTURAL UNEMPLOYMENT
comes from an absence of demand for the workers that are available. (mismatching)

Causes: 1. 2. Changes in technology Changes in consumers preferences

FRICTIONAL (SEARCH) UNEMPLOYMENT

comes from people moving between jobs, careers, and locations. Causes

1. People re-entering the workforce after raising children. 2. People changing employers due to quitting or being fired (for reasons beyond structural ones). 3. People changing careers due to changing interests.

CYCLICAL UNEMPLOYMENT
Cyclical unemployment occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high." Getting laid off due to a recession is the classic case of cyclical unemployment. This is why the unemployment rate is a key economic indicator

UNEMPLOYMENT RATE

Unemployment Rate = (Unemployed Workers looking for work / Total Labor Force) * 100

ROMANIA

ROMANIA IN EU

ANTI-UNEMPLOYMENT POLICIES
Measures that support economic growth process. The decisive role is played by the state, government. Modernization of unemployment offices Support entrepreneurship People Training

In conclusion, unemployment is an imbalance in the labor market, that every country should pay attention to. Its an excess of supply over working demand. Its an European problem. Reforms for the labor force, implementing educational and social policies, all these in accordance with the feature of every member state are necessary.