Topics
Involuntary Unemployment
Involuntary unemployment refers to the situation where an individual is not working, but is willing and able to work, and is actively seeking employment. This type of unemployment occurs when there are not enough jobs available for the number of people looking for work. It can also occur when an individual loses their job due to circumstances beyond their control, such as a company downsizing or going out of business. Some examples of involuntary unemployment include:
- Layoffs: When a company needs to reduce its workforce, it may lay off some of its employees. These individuals may be involuntarily unemployed until they are able to find new employment.
- Plant closures: If a factory or other large employer closes down, the workers at that location may become involuntarily unemployed.
- Downsizing: If a company decides to reduce the size of its workforce in order to cut costs, some employees may be let go and become involuntarily unemployed.
- Outsourcing: If a company decides to move its operations to a different location, or to use contractors or other third parties to perform work that was previously done in-house, some employees may lose their jobs and become involuntarily unemployed.
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Social Costs of High Unemployment
Study Notes