12046819
Description
Mind Map by Jia Jun Neo, updated more than 1 year ago
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Created by Jia Jun Neo
almost 7 years ago
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Structural
Unemployment
- Causes
- 1. ⃤ In demand for skills
- b. ⃤ in CA
- Low-cost
competitors
emerge
- Countries lose CA & focus on
developing other sectors
- Sectors previously with CA
declines, wkrs retrenched
- Struc UE occurs due to mismatch
between worker's skills & needs of
economy
- Struc UE occurs due to mismatch
between worker's skills & needs of
economy
- Sectors previously with CA
declines, wkrs retrenched
- e.g. China & India with
relative abundance of
low-skilled labour
- Countries lose CA & focus on
developing other sectors
- Low-cost
competitors
emerge
- a. Tech Innovation
- Automation
- Substitutes low-skilled
workers
- e.g. Self-Ordering
Machines
- e.g. Self-Ordering
Machines
- Creates Dd for
skills req. to
operate &
maintain these
machines
- But many
lack these
skills
- But many
lack these
skills
- Substitutes low-skilled
workers
- Automation
- c. . ⃤ In csr T&P affecting
Dd for g&s
- e.g. Increased popularity
of online shopping for
groceries
- ↓ DD for cashiers, ↑ DD for
management skills online
- ↓ DD for cashiers, ↑ DD for
management skills online
- e.g. Increased popularity
of online shopping for
groceries
- b. ⃤ in CA
- 2. Mismatch betw
location of indy &
workers
- Geog immobility
- High costs of relocation
- Family ties, long transport
duration , housing costs,
etc.
- e.g. In UK, unemployment rate in
South Wales is high despite available
job vacancies in London
- e.g. In UK, unemployment rate in
South Wales is high despite available
job vacancies in London
- Family ties, long transport
duration , housing costs,
etc.
- High costs of relocation
- Geog immobility
- 3. Labour
mkt rigidities
- e.g. Laws restricting hiring & firing ,
Min wage
- Surplus = UE
- Surplus = UE
- e.g. Laws restricting hiring & firing ,
Min wage
- 1. ⃤ In demand for skills
- Worst type of UE ?
- Can lead to LT UE as
difficult to solve
- Workers may lose morale
& exit lab. mkt
- ↓ Qty of labour , ↓ LRAS ↓
Potential Growth
- ↓ Qty of labour , ↓ LRAS ↓
Potential Growth
- Heightens negative
emotions e.g. anxiety ,
stress
- May lead to ↑crime rate
- Non MSOL ↓
- Non MSOL ↓
- May lead to ↑crime rate
- Long gestation period, strains
gov budget, workers
unreceptive, etc..
- Workers may lose morale
& exit lab. mkt
- Can lead to LT UE as
difficult to solve
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