Unemployment is one of the major economics problems. People who are considered unemployed are those who are seeking work or laid off for more then a week. There are many different reasons why a person could be unemployed. Three of those causes are cyclical, structural and seasonal unemployment. The government tries to find solutions in order to reduce unemployment by making up policies.
Cyclical unemployment is one of the causes that creates unemployment. When a person is cyclically unemployed, it means that the income is limited to the economic state and there are more jobs when economy is well however when it’s not the number of jobs available decrease. Also when people have less spending money it creates many cutbacks and loss of jobs. Therefore, this form of unemployment is usually temporary. When there is an economic growth, cyclical unemployment reduces.
Structural unemployment is another cause that creates unemployment. As time goes on, consumer’s demand changes, which causes a growth in one industry, a decrease in another or it may lead to a complete shut down of a industry. And even tho
Therefore, companies will have to expand in order to produce the needed demand. And this will increase public spendings. Also borrowing money from the government will decrease the deficit. In order to reduce cyclical and structural unemployment, the government may lower the value of canadian dollar. The other examples where people could be seasonally unemployed are farming, lumbering and etc. And it"tms caused by many factors 3 of which are cyclical, structural and seasonal unemployment. Lowering the value of canadian dollar will increase the demand for canadian product. More business will expand and open due to low interest rates. However, those extra spendings may cause an inflation in the long term. Thus structural unemployment causes regional unemployment because certain areas are unable to attract new industries when their old ones are shut down. However, demand in some industries like snow cleaning will increase. Lowering value of canadian dollar and interest rates will benefit the deficit. It also may decrease tourism outside of the country but increase the number of tourists coming to canada. Despite that, lowering interest rates, will reduce unemployment.