A Modest Proposal To Reduce Unemployment

Unemployment occurs when a person who is actively searching for employment is unable to find work or defined as a situation where someone of working age is not able to get a job but would like to be in full time employment. The most often mention measure of unemployment is the unemployment rate. Unemployment rate is the percentage workforce who are unemployed and are looking for a paid job or measures the percentage of employable people in a country's workforce who are over the age of 16 and who have either lost their jobs or have unsuccessfully sought jobs in the last month and are still actively seeking work. Unemployment rate is one of the most closely watched statistics. A falling rate, similarly, indicates a growing economy which is usually accompanied by higher inflation rate and may call for increase in interest rates. The formula to measure unemployment rate is by dividing the number of unemployed with the total of labor force. The poor who are not working, and to a certain extent the non-poor who are low educated and unemployed, tend to become discouraged workers. These are the people who are out of work but are not looking for work because they believe that they cannot find one (Kingdon & Knight 2006; Suryadarma, Suryahadi, & Sumarto 2005). For examples, they are relatively highly educated, thus have high wage reservations and prefer to wait for the high paying job. In the effort to reduce unemployment, it is important to ensure that the types of jobs created in an economy match the skills and expectations of the unemployed. There are many types of unemployment:

The declining in the aggregate demand will decrease the productivity and indirectly will decreases in the uses of labor by the producer. The declining in the agregat6e demand is because of economics factors and inflation which will make the purchasing power of households