The demand in the international labor force has increased drastically over the years. At present, the global labor force has produced millions of jobs. However, despite the rapid and continuous growth, the significant lack of employees pose as the central dilemma that modern society has to face.
One of the critical factors that have caused the lack of employment is the way employers and companies approach job postings. Companies that set realistic job descriptions are more likely to attract applicants compared to companies that set unattainable and unrealistic requirements.
Studies have shown that more than 3 million people are unemployed this 2018. The alarming decrease in the global unemployment rate must urge international governments to take action.
Governments can do this by aiding employers by educating them on how to set standards in their companies. Companies will gain more employees by setting realistic, practical, and attainable standards. Further, governments and establishments must reinforce labor rights and decent working hours.
International Economies are losing a significant portion of consumer spending due to the high unemployment rate around the world. Furthermore, the excessive global unemployment rate has a wide array of adverse effects on individuals.
Long-term unemployment causes the financial, psychological, and emotional destruction of individuals. The categories of unemployment must be learned to tackle the problem of high unemployment.
The three main classifications of unemployment are cyclical, frictional, and structural unemployment. Cyclical unemployment emerges when there is a lack of services and goods in the economy to provide jobs for everyone who needs a source of income.
Frictional unemployment occurs when there are unexpected changes in the situations of employers and employees. Transitions like employees moving to another country or state or employers laying-off workers due to company recessions – are examples of conditions that cause friction to the employment and lifestyles of workers.
Structural unemployment occurs when there is an incongruity in the industrial or demographic composition of an economy. Technological advances causing a decline in older industries are an example of structural unemployment.
Understanding the main classifications of unemployment will aid in the further comprehension of unemployment as a global economic crisis. Moreover, companies must consider tackling unemployment at a smaller scale, specifically their ways of setting standards for applicants. Employers must make their job descriptions specific and realistic.