Video instructions and help with filling out and completing What Form 8815 Unemployment

Instructions and Help about What Form 8815 Unemployment

Now that we know the term unemployed means not working but seeking work you need to recognize that there are different types of unemployment some of longer duration and/or more serious consequence to the economy than others frictional unemployment is unemployment due to the natural frictions of the economy which is caused by changing conditions and represented by here's the most important part qualified individuals with transferable skills who change jobs examples might include a short-term contract engineer who seeks a new position every 6 to 18 months as his or her contract expires this person has the skills to move to a new contract position or what about a full-time college student who is not previously unemployed but starts interviewing for jobs once the student starts seeking work he or she becomes part of the labor force as long as he or she has the education and skills necessary to start a job it counts as frictional unemployment frictional unemployment is typically of shorter duration than some of the other forms of unemployment structural unemployment unemployment due to structural changes in the economy that eliminate some jobs and create others for which the unemployed are unqualified one really good example that I can think of is from the 1990s when the North American Free Trade Agreement NAFTA for short was passed with the passage of NAFTA the u.s. lost a lot of blue-collar factory type jobs but gained white-collar jobs say in computer programming or Finance workers laid off from their factory jobs couldn't very well apply right away for a high-tech job they would need to go back to school for a whole new type of training and education some who got laid off were older workers who are not interested in going back to school at all overall structural unemployment is a longer-term issue and frictional unemployment seasonal unemployment is unemployment due to seasonal trends for example jobs related to a seasonal crop or a seasonal activity such as skiing or seasonal demand like at Christmas seasonal unemployment is periodic and predictable and can therefore be planned around cyclical unemployment unemployment due to contractions in the economy the economy moves in cycles when the economy does well there are lots of jobs and unemployment is down when the economy does poorly there are fewer jobs and the unemployment rate goes up the biggest problem with cyclical unemployment is that no two cycles are the same in terms of severity or length so it's difficult to tell when jobs will come back it could be a few months or over a year in the case of the Great Depression it was years before the economy recovered and jobs were created now that we've considered these four types of unemployment think back to the second macroeconomic goal low unemployment notice the goal is not zero unemployment but rather low unemployment why do you suppose this is one reason is that in a dynamic economy where labor is allowed to move freely from one job to another or even one career to another there will always be some amount of frictional unemployment similarly the continual change that occurs in an innovative Society means that there's always some structural unemployment to eliminate these you'd be to appoint each employee to a job and that would be the person's job for life plus you could never allow any underlying structural change like technological improvements no zero unemployment isn't the goal but low unemployment is how low well the natural rate of unemployment that caused only by frictional and structural factors is our target if we achieved the natural rate of unemployment we have full employment full employment is the condition that exists when the unemployment rate is equal to the natural unemployment rate for many years in the u.s. the natural rate of unemployment was thought to be five to six percent but then with the unprecedented economic expansion of the US economy in the 1990s we experienced four percent unemployment without suffering any negative inflationary side-effects if we go much lower than this though companies would start competing to get workers by offering higher salaries and more benefits which would in turn drive product prices upward causing inflation next time GDP