Unemployment is the state of being without a job and actively searching for employment. To be considered unemployed, a person must be out of work and not receiving income from another source (like wages or an investment). Those who would like to work but aren’t looking for work or have stopped their search are not included in unemployment statistics. Unemployment is generally measured from a monthly survey of households.
The economic health of a country can be judged by its unemployment rate. A high unemployment rate indicates a weak economy, while a low one signals a healthy economy. Many governments offer support to the unemployed through social welfare programs and other services.
While a lack of jobs has profound effects on the lives of individuals, it also impacts society as a whole. Unemployment can lead to a loss of purchasing power, which in turn reduces the demand for goods and services. This can result in a downward spiral of economic growth.
Economic fluctuations are the main factor that influence unemployment levels. During economic downturns or recessions, businesses often have to cut costs and lay off employees as a way to maintain profitability and market share. In contrast, economic expansions usually lead to increased hiring and more jobs.
Despite these fluctuations, it is unlikely that unemployment will ever reach zero. A certain level of unemployment will always exist, as it takes time to find a new job when you lose one. In addition, some people will be temporarily unemployed if they are between jobs or just starting out their career.