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We have to differentiate a few types of unemployment:
- seasonal unemployment: e.g. tourism-areas, construction sector
- cyclical unemployment: if a country has an economical boom then people have jobs, if their is an economical bust people lose jobs
- frictional unemployment: you stop working in December and start your new work in March, this period between this months is called frictional unemployment
- structural unemployment: in factories > too old machines, cannot produce enough, sell less products, cannot pay their blue and white collar workers > more unemployed people
- hidden unemployment: dismissed people don't ask for a new job, they also don't register for unemployment benefits, e.g. women after their maternity leave often stay at home with their children
REASONS:
Companies have many reasons to dismiss employers and employees:
- they want to make more profit
- replace workers with machines
- close a company and open the same in an other country with lower wages / lower labour costs
- companies prefer illegal workers
- companies don't like workers, who are too old (around 40 years), but they also don't want young workers, because they have no praxis. Workers always have to be on top, have to invest their spare time in work,...
Many companies believe that it is more important to gain a higher job security as to gain more money.
NEW JOBS:
In the last years many new jobs have been created. The ordinary job from 8 to 5 does not exist any more. You can decide distinguish between the following ways of work:
- flexitime - job sharing
- short term contracts - free lance contract: people are paid for the
- part-time result and not for the
- telework time, they invest
Where you can find new jobs:
- Information-sector: e.g. computer service
- Information technology sector: shortage of professional personnel; ask governments for help; ½ a million jobs are waiting in EU to be filled.
- Health sector: physical and psychological well being is increasing, life expectancy is growing,... We have to import people for this sector, e.g. nurses,...
- Leisure economy sector: expansion of sporting and cultural services; jobs are e.g. in museums, operas, theatres,...
- Film and Entertainment industry
CONSEQUENCES:
- for dismissed people:
If single persons are dismissed, they have to cut back, e.g. they cannot live with two cars, and this people cannot make holidays twice a year,...
- for society:
Sometimes society has to finance jobless people. If a worker had not worked for a long time, he is not entitled to claim unemployment money. So the society has to help him.
- for companies:
Companies dismiss people if they don't work correct, sometimes also, if they are too old and this means with 40 years. In Austria companies have to pay punishments, if they dismiss workers who are 50 years or older. Sometimes companies try to reduce their employers, because every worker costs much money or they try to replace workers with machines.
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