ECON WEEK 3 Assignment Example | Topics and Well Written Essays - 500 words

ECON WEEK 3 - Assignment Example For example, an accountant would not be interested in the job vacancy published by a hospital. The structural unemployment refers to the loss of employment due to changes in technological demands and changes in the operational process (Oswego, 2014). For example, the automation of machine systems in the factories may lead to structural unemployment due to loss of demand for labor. The unemployment scenario is considered to be undesirable as it leads to substantial gap between the potential GDP and the real GDP of the country. The reduction in the volume of products and services produced within the geographical boundary leads to the gap between the supply and demand in the market which finally leads to inflation in the economy (Schenk, 2014). However, all forms of unemployment are not undesirable as it has beneficial effects in the long run. For example, the loss of demand for existing labor force may occur due to structural unemployment that results from the introduction of new technology and automated systems in the production process. Although it increases unemployment in the short run but the gradual adaption of the workforce to the technologically improved processes leads to improvement in the operational efficiency and enhancement of the production volumes. In this view, structural form of unemployment is not undesirable. The advent of internet has the potential to completely eliminate frictional unemployment. This is due to the fact that the spread of the internet and World Wide Web have enhanced the power of voluntary job search by the candidates. Instead of readily available job opportunities, the candidates would look for the desired job opportunity on a voluntary basis that would lead to loss of job in certain sectors. However, there would be other candidates who would look for jobs in these sectors and the internet would be a useful tool to provide them the information on the desired job vacancies. The