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Unemployment is a status of individuals, who do not have jobs or who are seeking a job. Unemployment influences negatively the country’s economy, especially those countries, which have underdeveloped economies. It causes such problems to the country as: the reduction in the output, the reduction in tax revenue, and the rise in the government expenditure.

Let us discuss the first problem. The economy of the country loses out on its output, because the workforce does not produce goods and services. The second problem is caused by the inability of people to earn money. An income tax is an important part of the revenue for the government, and since people do not earn money, the government does not get the income tax revenue. The government also has to provide the unemployed people with insurance benefits, and as a result it decreases the profit for the government.

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There are several types of unemployment: cyclical, seasonal, frictional, and structural unemployment. Cyclical unemployment occurs when there are fewer unemployed people during the boom phase of the economy, and there are more unemployed people when the economy is in recession. Seasonal unemployment takes place during specific seasons, while frictional unemployment means that someone lost his job and is looking for a new one. The last type of unemployment, structural unemployment, means that with the technological progress companies need less workforce.

Unemployment is a problem which occurs in any country and has a negative impact on it’s economy. So, measures should be taken to reduce the number of unemployed people if such a problem occurs. For this purpose there are several procedures to measure unemployment. First one implies the measurement of unemployed people, who are registered in the employment agencies, and the second is taking a sample of households, which is also the most widely used measure.

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