DISGUISED UNEMPLOYMENT RESEARCH PROPOSAL PAPER
Unemployment is the condition and extent of joblessness within an economy, measured in terms of the unemployment rate--the number of unemployed workers divided by the total civilian labor force. The history of unemployment is the history of industrialization (Sinha, 2006). Unemployment levels are increasing dramatically in many parts of the world because of the major causes such as overpopulation, traditionalism, and ignorance. Moreover, more often, the demand for jobs is higher than what is being offered in the market. Economists classify various types of unemployment. Cyclical, frictional, structural and classical, seasonal, hardcore and hidden are the sub-types and these kinds of unemployment may combine different types.
In addition, unemployment resulting from changes in the basic composition of the economy is common nowadays. These changes simultaneously open new positions for trained workers, and left other people with no background on it unemployed. One example is technological progress. In a fewer year far less working hours are needed to produced all the goods, hence there will be less demand of labor and will lead to the raise of unemployment ratio. Persons who would like to get a job and would be available for work within, let us say, two weeks, but have not sought work in the past four weeks are classified as being in disguised unemployment. It is a major crisis worldwide, and changing the word unemployment into employment is the responsibility of jobseekers. Acquiring a secured job is the quest of all people, and what the government as well as individual efforts are doing is critical.
Several types of unemployment are as follows:
Cyclical unemployment- this exists due to inadequate effective aggregate demand. In this case, the number of unemployed workers exceeds the number of job vacancies, so even if all open jobs were filled, some workers would remain unemployed.
Frictional (search unemployment) - this kind of unemployment involves people in the midst of transiting between jobs or searching for new ones. New entrants (such as graduating students) and re-entrants (such as former homemakers) can also suffer a spell of frictional unemployment.
Structural- this involves the unemployed workers lacking the skills needed for the jobs or they are in the wrong part of the country and just take the jobs that are offered. It is a mismatch of skills and opportunities due to the structure of the economy changing.
Classical- the number of jobseekers exceeds the number of job vacancies. Employers deter hiring all available workers because the cost would exceed the marginal product of labor.
Hidden- is the unemployment of potential workers that not reflected in official unemployment statistics, due to the way the statistics are collected. This includes the retirees and people who have seasonal jobs that statistics does not count because “full time” jobs are the ones that they consider as “jobs”.
Hardcore- unemployment for people unable to work due to mental and physical maladjustments.
Full unemployment- it is the inflation barrier as corresponding to the natural rate of unemployment. The "natural" rate of unemployment is defined as the rate of unemployment that exists when the labor market is in equilibrium and there is pressure for neither rising inflation rates nor falling inflation rates.
In every society there is a small percentage of labor force which is always in the condition of unemployment in the sense they are either seeking or they are voluntarily unemployed. Such a percentage considers the natural rate of unemployment. Public authority need not introduce any special measures to deal with such unemployment. If 3 percent is assumed as a natural rate of unemployment then it can be said to be the net unemployment and requires quick remedial measures. However, public unemployment programs are primarily targeted against involuntary unemployment, other forms of unemployment may also derive some indirect relief from such activities (“Types of Unemployment”, 2008).
III. Literature Review
Underemployment, partial unemployment, and disguised unemployment
are various terms used to connote the several manifestations of inadequate employment opportunity or the underutilization of the actual or potential manpower resources. The difficulties of arriving at universally accepted definitions of full employment and of unemployment are well known. Because partial and disguised unemployment involve aspects related to considerations of full employment as well as to the nature of unemployment, it is important to review the concepts underlying the various terms used to describe partial and disguised unemployment (Sinha, 2006).
A recent study by the United Nations refers to underemployment as “employment in jobs which occupied only a part of the workers’ available time or permit only the partial utilization of their capacities. The latter form of waste of human resources is sometimes called 'concealed' or 'disguised' unemployment, and may be created by any of the conditions which produce total unemployment, including structural maladjustments, cyclical fluctuations, or persistent deficiency
of the general demand for labor. Since the concept of underemployment includes employment which does not permit the workers to make their full potential contribution to the output of the community, full employment requires an occupational distribution of the labor force which is optimal from the standpoint of maximizing for capital output”.
This concept of underemployment implies an evolutionary or developmental approach, as the optimal distribution and utilization of the labor force is, at any given stage of economic development, not an attainable goal, but rather an ideal construct indicating the direction in which changes should be sought (Ducoff&Hagod, 1997).
There are many factors why unemployment is prevalent in the modern market economy. Rapid technological change, business cycle or recessions, seasonal factors such as changes in taste and climactic conditions that affects demand for products and services are some of the major causes. Individual perceptions and willingness to work and search for jobs, their values and attitudes towards some jobs and about employers, accessibility for retraining and acquisition of work skills. In addition, the willingness and perception of the unemployed for the benefits of training and the possibility for them to get a job after the training, discrimination in the workplace based on race, color. religion, ethnicity, age, and class are the causes of topic under research (“How Unemployment Causes”, 2007).
Symptoms or the effects of the topic under investigation are people unable to earn money to meet financial obligations. Unemployment increases susceptibility to malnutrition, illness, mental stress, deterioration of job skills over time, depletion of personal savings, and loss of self-esteem that leads to depression. According to Pierre Bourdieu, the employed feel less secure, workers are less willing to leave unsatisfactory jobs, divisions in society increase and the prospect of equality of opportunity decreases. An economy with high unemployment rate is conducive to the fall down of a country. It involves costs and losses not just to those without a job, but to the economy as a whole.
V. Research Model
This research will use both quantitative and qualitative approaches, but the approaches are relatively independent until the interpretation stage (Niglas, 2000). The research design chose both qualitative and quantitative research, which uses explanatory methods in describing the variables wherein the data, situations, or other facts collected will be explained or correlated with other data. It is especially useful when conducting a study wherein the data are immeasurable, such as feelings, beliefs, thoughts, and others (Mays & Pope, 2000). Furthermore, the study will be descriptive as it will focus on the conditions set and the nature that surrounds the data and does not focus on the correlation with other collected facts.
Moreover, research methodologies are differentiated between quantitative and qualitative approaches. The two types of research methodologies have different philosophical roots (Maykut and Morehouse, 1994). Newman and Benz (1998) differentiate qualitative from quantitative research as approaches that are different in basic philosophical assumptions about the nature of experience. The assumption, that there is a common reality amongst people, directs quantitative researchers to use objective methods to search for knowledge (Newman and Benz, 1998). On the other hand, qualitative researchers, who believe that there is no “objective” reality, reject objective methods and claim that subjective methods are the best way to understand reality (Newman and Benz, 1998). Therefore, in investigating disguised unemployment, using both approaches will lead to an unbiased result because both sides will be explored.
VI. Research Questions
a) Questions about the research:
1) What are the factors that affect to the further deepening of unemployment in the society?
2) What are the societal and individual causes of disguised unemployment?
3) How can the knowledge of the several types of unemployment lead to the understanding and resolving of the problem?
4) What are the causes and effects of disguised unemployment in the economic growth of a nation?
5) How does one’s National Minimum Wage affect unemployment and inflation?
6) What are the government’s policies and regulations in keeping their people employed—or at least keep unemployment rates at a minimum?
7) Does unemployment insurance benefits a steady reliable source of income?
8) What are the overall effects and inherent trade-offs of policies affecting unemployment?
9) Are cultural differences a big factor in determining whether a person is predisposed in becoming unemployed?
b) Questions for the respondents:
1) What makes a person fall under the category of being unemployed, and/or disguisedly unemployed?
2) Do you think disguised unemployment is people without no jobs, or with jobs but are not actively participating in it?
3) Is disguised unemployment mean more persons employed for a job, which in reality takes only a few people to accomplish?
4) Is it just the unemployment of women?
5) Does unemployment of people above 60 be called disguised unemployment?
6) Why does tax hikes cause unemployment?
7) What is open and disguised unemployment?
8) Does unemployment differ by age and gender?
9) What are the reasons behind unemployment?
10) Does the government have anything to do with it?
11) What are typical jobs that are hard to get into? What are the jobs that is easy to penetrate, regardless of sex, gender and education?
12) Who are the people considered or not considered fit to have a job, is it mainly personal reasons?
13) Is the lack of knowledge defers a person on not having a job?
14) What are the basic skills needed by a person to acquire a job?
15) Is the demand for jobs most of the time scarce than the supply for jobs?
16) What are the individual and social costs of unemployment?
17) Is inadequate employment considered as disguised unemployment?
18) What are the effects of unemployment in the society?
19) Does labor laws cause unemployment?
20) How can one aid an unemployed person?
21) Is worker’s compensation regarded as disguised unemployment?
22) What is the acceptable societal consideration if one has to be employed? Is it most of the time personal again?
23) Do immigrants add to the cause of disguised unemployment in a country?
24) Does a minimum wage cause disguised unemployment?
25) Do soaring taxes cause disguised unemployment?
26) Is laziness the main cause of unemployment?
27) Is urbanization the main cause of poverty in the third world countries?
28) What are the effects of inflation, recession, and unemployment in a society?
29) What are the effects of a rise in the natural rate of unemployment?
30) What are the disadvantages of disguised unemployment?
31) How important are the flexible jobs for the unemployed?
32) What effects do illegal immigrants have on economic growth?
33) Can a person draw unemployment for medical reasons?
29) What do you think is the immediate solution to this worldwide problem? At least, what can you do in your own little way?
The relationship between the independent and dependent variables that are given is in correlation with one another. One cannot possibly exist without the other. There is extensive debate among economists as to the causes and effects of unemployment. In the world of economics, it emphasizes unemployment as resulting from insufficient effective demand for goods and services in the economy (cyclical unemployment). Others point to structural problems, inefficiencies, which is intrinsic in markets (structural unemployment). (Classical unemployment) tends to reject these explanations, and focuses more on rigidities imposed on the labor market from the outside, such as minimum wage laws, taxes, and other regulations that may discourage the hiring of workers. Yet others see unemployment as largely due to voluntary choices by the unemployed (frictional unemployment).In return, unemployment is conducive to a world of crime such as smuggling, stealing, etc. since the people are not having a regular income it leads them to poverty because of insufficient sustenance. Unemployment affects the whole economy, not just to the unemployed.
Furthermore, the unemployed have skills and training that are not being utilized in production. National income and production could grow, if these people were gainfully working. Unemployment represents a private cost to those directly affected by it—, which is a loss of income, and if unemployment is long term, a potential loss of skills as well. Unemployment is associated with higher levels of family breakdowns, alcohol and drug abuse, and suicide. Individual willpower and the government offering considerable jobs will result to reduction of unemployment.
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