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During recent decades, an impact of unemployment is risingvery quickly throughout a world, especially in UK
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Aquantity of unemployed people in UK has expanded from
1
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84 million at the end of 2014 (BBC, 2015)
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(2003: 413-414),
unemployment remains as a major problem of a government, because unemployment leads tothe negative
consequences, like aloss of personal income, decreasing living standards and an increasing gap between rich and
poor
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After first examining the main causes of unemployment, it will
thoroughly consider the government regulations
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Economists usually distinguish between the five main types of unemployment: frictional or search unemployment,
structural, seasonal, cyclical and real wage or classical unemployment
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According to Begg et al
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Some people face high difficulties to find a new job what creates
this type of unemployment
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(2004: 296) claim that this type of unemployment is not last
for long because peoplegenerally findemployment in a not distant future
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and
Sharp et al
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In addition to Giddens, Sloman (2003: 409) notes that a long gap between jobs makes people more
deskilled; accordingly, it becomes harder for them to find employment
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This change can lead to the loss of jobs of employed people in a certain industry or working area (Tutor2u,
n
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Brownie (2006: 386) states that people who lose their jobs due to these changes usually do not have skills to
dothedifferent occupations
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Haralambos and Holborn (2000: 743) add to Brownie’s point, by expressing
that not just an absence of abilities lead to this sort of unemployment, but a non-availability of the suitable
vacancies near a living place of workers can also be the cause of unemployment
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Overall, Sharp et al
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The seasonal unemployment involves jobs in the seasonal departments like sea trips, ski resorts or tourism
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In addition to that, Brownie (2006: 386) claims that this type of unemployment does not
involve a large number of people and, therefore, cannot be considered as the major problem for the
economy
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Despite that, Haralambos and Holborn (2000: 743) state that the seasonal unemployment is still a
problem for theeconomy and must be reduced or even eliminated
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According to Sharp et al
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Subsequently, these reductions force the demand for workers to fall, what creates this kind of
unemployment (Tutor2u, n
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Begg et al
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Moreover, Haralambos and Holborn (2000: 743-744) add to Begg’s point, by asserting that after
appearing of this type of unemployment the economic situation becomes worse each day
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Unlike the cyclical unemployment, where there is a shortage of the demand for workers, the classical
unemployment appears due to the exceeding number of workers for a certain number of theavailable working
places
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This occurs because every person in the world attempt to become rational and look for a
highest salary
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At that point, the demand for a certain industry will stabilise
because people will lose a motivation to go toa particular working place or industry
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Having examined the main causes of unemployment, the government policies and regulations will now be
considered
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According to Sharp et al
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Gillespie (2014: 444-445) argues that the demand-side
policies attempt to increase the level of the demand in the economy
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Subsequently, if
people will receive more income they will spend more money for the goods and services
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Edgell (2012: 174176) proposes that this policy will dramatically reduce the structural and cyclical types of unemployment
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Gillespie explains that if the government will reduce the interest rates,
companies will be stimulated to borrow more money in the banks on the development of new technologies
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Haralambos and Holborn (2000: 745-746)
conclude that the demand for certain working areas will increase what will affect almost each type of
unemployment, especially frictional, structural and cyclical types of unemployment
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By expanding this demand, the need for the employees willincrease, what will reduce the
frictional, seasonal and cyclical types of unemployment
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(2004: 309) propose that overall demand-side policies reduce unemployment very effectively, however, they are
not enough to stop unemployment to grow
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Supply-side policies are focused on the types of unemployment where people do not have required skills or people
who do not want to accept the job
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Thispolicy will gradually
decrease the structural and seasonal unemployment
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This strategy will force unemployed people
to find the job quickly because the benefits of being unemployed will be very small
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In addition to Gillespie and Sloman, Sharp et
al
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Despite that, Gillespie (2014: 445-446) claims that without the demand-side policies, the supply-side policies
cannot stop the threat of unemployment
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According to Sharp et al
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Begg et al
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, that the
supply-side policies have gained an advantage
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Similarly to Gillespie, Sloman (2003:
413-414) claims that the demand-side policies are more productive than the supply-side policies
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Only a right combination of both demand-side and
supply-side policies can reduce the negative impact of unemployment
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There are the five main types of unemployment, which differ on the basis of
thecertain cause: frictional, structural, seasonal, cyclical and classical unemployment
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It can
be concluded that unemployment is still the major problem of the world, which requires a constant observation
and intervention by the government
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REFERENCE LIST
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(2015)
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http://www
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com/news/10604117
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th

Begg, D
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&Dornbusch, R
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Economics
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New York: McGraw-Hill Education
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(2006)
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2 edition
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nd

Edgell, S
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The Sociology of Work - Continuity and Change in Paid and Unpaid Work
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London: Sage
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(2009)
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6 edition
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rd

Gillespie, A
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Foundations of Economics
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Oxford: Oxford University Press
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& Holborn, M
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Sociology: Themes and Perspectives
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London: Collins
Educational
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, Powell, M
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(2003)
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5 edition
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th

Sharp, A
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, Register, C
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& Grimes P
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(2004)
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16 edition
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th

Sloman, J
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Economics
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Essex: Pearson Education
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(n
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Causes of Unemployment
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net/economics/content/topics/unemp/unempcause
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[Assessed 21 February 2015]

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