Although unemployment is a great problem in the world, other countries lead in the rate of unemployment while others are coming up with measures to create employment especially for the youth and thus are further down on the world unemployment index. Even though the global unemployment rates have rather stabilized, the rates remain way above the pre-financial crisis levels. After a swift increase between the years 2007 and 2010, the rate of unemployment has stabilized at 13%. The rate also brings to focus a decrease in the number of the unemployed especially the youth to a staggering 73.3 million in the year 2013 which is just 3.3 million lowers than the peak in 2009 at 76.6 million. (World Bank, 2009). The term unemployment refers to the population of the labor force that has no work but is available for and is seeking means of employment. In an economy, the three main types of unemployment are frictional, structural and cyclical. Cyclical unemployment is experienced when with time the economy goes through ups and downs such as the recession causing people to lose their jobs. Cyclical unemployment occurs in cycles where at times there is unemployment and at times not. Frictional unemployment occurs due to the occasional turnover in the labor market and the time it requires for people to get new jobs. This kind of unemployment occurs when people change jobs and take time to get a proper match with a potential employer. Finally, Structural unemployment occurs due to the lack of demand of workers of certain types. The rise of this kind of unemployment is caused by technological advances and availability of low-cost labor. For a similar paper follow the link Buy Term Paper Online
The three major types of unemployment plague the economy in Singapore. Cyclical unemployment is available in this country due to the fact that the country has an expansive external sector that depends heavily on external demand to boost economic growth. Since Singapore’s economy depends on exports when these fails, there will be a low output and income that will, in turn, increase unemployment that is demand-deficient. Due to globalization, a lot of restructuring is taking place in Singapore causing the increase of structural unemployment. The country has changed to a capital-intensive economy requiring different skills that may not be well available among the work force leading to structural unemployment. The job creation and destruction taking place in Singapore has caused the need for people to look for other sources of employment and for firms to search for employees thus creating a lag in time and causing frictional unemployment. Recently graduated students without jobs are also part of the frictional unemployment Get in touch with Dissertation Help Online
The focus of Singapore’s government on the growth of SMEs has increased employment opportunities for many of its citizens as it targeted the demand of the labor market. The measure helped reduce the unemployment levels significantly. The government of Singapore also cut the Central Provident Fund (CPF), which is required from employers, by 50%. The move made it cheaper to employ the citizens of Singapore rather than outsiders and thus increasing the rates of employment. The government also intervened into the free market system to take care of the income gap. The government managed to do this by making education cheap and compulsory for all citizens.