Unemployment has many types, including voluntary unemployment, so what is it?

There are many types of unemployment, including voluntary unemployment

Unemployment has many types, including voluntary unemployment, which is a  state in which a person chooses not to work, and this is related to preference and choice , and this is due to the lack of vacancies, or in a second sense, individuals choose to stop working with intent despite the existence of jobs available to work in.

A group of reasons are explained why people choose to stop working. Individuals do not take jobs because of low wages, because wages are not sufficient to cover all the requirements of living, and because they are not commensurate with all the jobs available to them. .

It is known that the labor force of the population represents the age of production for all those who work at the present time or who are unemployed, but who search for job opportunities commensurate with their skills.

There are a number of reasons why people choose not to work. For example, individuals do not accept jobs because salaries are low and they do not cover the requirements of a living. It is possible that generous unemployment benefits are a major reason for not choosing work.

There are many types of unemployment

• cyclical unemployment.
• structural unemployment.
• classic unemployment.
• Frictional unemployment.
• Voluntary unemployment.
• technological unemployment.
• Casual unemployment  .
• Chronic unemployment.

Cyclical unemployment : This unemployment appears as a result of a decline in aggregate demand. If the total demand continues to decline, it is called general or under-demand unemployment.

When companies face a decline in their services or products, they reduce their production and this is necessary and the number of manpower in the organization is reduced, such as unemployment caused by recession.

Structural unemployment : When industries decline due to changes that are long-term, this unemployment occurs during market conditions, resulting from technological progress, economic development and innovations, which occur rapidly around the world within all fields.

Classic unemployment : When wages rise, classic unemployment occurs, when workers reject low wages and demanded higher wages. This led to the emergence of classic unemployment before the thirties, and it is also called real wage unemployment.

Seasonal unemployment : This unemployment appears because there are industries that distribute their production at certain times only each year, and among these products are the production of agriculture and tourism companies, as well as the construction process, for example workers in a ski resort after the end of the winter season stop working.

Frictional unemployment : It is also called search unemployment when workers lose their current jobs and are looking for other new jobs. It is very little that this type of unemployment is reduced.

Voluntary unemployment : A situation in which workers choose not to work, and this is the current equilibrium rate. There are reasons that prevent workers from participating in the labor market, and this is due to the high rates of per capita income tax and generous social welfare.

Educated unemployment : Many suffer from a shortage of labor, and this is due to the incompatibility of the qualifications of workers with the jobs offered to them, the lack of education and mass production and the preference for white-collar jobs, which mainly asks about the widespread unemployment in India among the educated youth.

Technological unemployment  : It results during changes in production technologies that do not require much work. Modern technology requires a small number of workers, and this helped in the emergence of this unemployment.

Casual unemployment : If the individual works on a daily basis and receives his daily wages, this leads to the occurrence of occasional unemployment, which is the cause of contracts that are short-term, as well as a decrease in medicine and a lack of raw materials.

Chronic unemployment : If unemployment lasts for a long time within any country, it is called chronic unemployment, and this is due to the rapid growth of the population, the insufficiency of the level of economic development, and this is due to a vicious circle of poverty, and these reasons are the main causes of chronic unemployment.

of the economic effects of unemployment

The effects of unemployment on the government : Reducing tax revenues, and this is due to the lack of workers. There will be small numbers of people who have sufficient income to pay taxes because of this, and thus the government will get little tax revenues, and this affects the government’s public finances significantly.

Because there are few jobs, economic growth decreases, and thus companies will not be able to produce a lot of goods and services, and the high costs of luxury mean that few people will work and many people will demand benefits, and this leads to many people claiming benefits to drain financial resources So much is spent on benefit payments and less is spent on secondary areas of the economy, so there is an opportunity cost.

 Companies : Reducing wage costs leads to unemployment in the economy, increasing the supply of labor for companies available for employment, and this creates downward pressure on wages, as employment is less and many people are willing to get jobs with less pay, and this has a positive effect on all companies due to the decrease in private costs. which are being changed.

The presence of many workers leads to unemployment and gives companies more options for employment, which allows them to hire workers who are highly skilled and have high experience.

People : People who are out of work due to loss of income and lower standard of living will have to live on private savings and subsidies and as a result, they will be able to make fewer purchases of goods and services as well and see a significant decrease in their standard of living.

When people stop working, this leads to them losing skills and ability to work again. The longer people stop working, the less their ability to get jobs in companies that need workers, and this is because they spend a lot of money in order to retrain them from the beginning and the new.

The effects of unemployment on youth

Low income : Individuals who are unemployed suffer from low income, and this is a direct result of the lack of any job to join, given that this job provides wages for each person, so every unemployed person does not have a wage to live with and fulfill his living requirements.

Health problems : Unemployment is likely to greatly affect the physical health of the individual because the person being unemployed is very stressful and this causes him to have health problems that are related to stress, for example, high blood pressure, heart disease, headaches, insomnia and back pain in general. All these health problems are due to the increase in people visiting the doctor and consuming medicines in order to manage his health conditions, and he does not have any wages to spend on that.

Negative family effects : The unemployed person's family is at risk of the negative impact of unemployment, so the unemployed person has great family challenges and greater psychological pressures.

Mental health challenges : Studies have shown that unemployment increases the risk of depression and psychological anxiety for the unemployed person.