Question

The Mankiw text covers several types of unemployment, including frictional unemployment (the time lag for workers to find a job to fit their skills), structural unemployment (when the number of workers exceeds the number of jobs), and cyclical unemployment (when unemployment deviates from the natural rate of unemployment).

To complete the Discussion activity, write a post that answers the following questions:

• One type of unemployment the text does not cover is seasonal unemployment. Research seasonal unemployment and write a discussion post that answers the following questions:
  • What is seasonal unemployment?
  • Name two jobs that you think would be affected by seasonal unemployment. Explain why they would be affected.
  • How can seasonal unemployment be alleviated? Should it be alleviated? Why or why not?

Answer 1

Seasonal unemployment is that type of unemployment in which the people is with no job for a specific time-period of a given year. This happens when at the given specific time-period, the demand for labor is a level lower than usual level due to seasonal dependence of the industries or business.

The two jobs that are affected by seasonal unemployment are the job of the Election workers and Life-guards.

It is only at the time of election, there is demand for the election workers. As the election time gets over, the election workers are out of business and search for new jobs.

It is during calm weather condition , generally during summer, the demand for life-guards increases as people tend to visit sea-shores or enjoy bathing in the beaches. Due to increased demand for beach tourism , demand for life-guards increases.

The seasonal unemployment can be alleviated by widely diversifying the economy such that people remain occupied throughout the year. Even government regulations that ensures seasonal industries to remain operational for entire year can help resolve problem of seasonal unemployment.

Yes, it should be alleviated. This is because, the seasonally unemployed people are not productively utilized throughout the year. There is the risk of maintaining a given income base for throughout the year to meet the livelihood requirement of the family.