Normal Circumstances, It Can Be Essay

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A third cause of unemployment is actually the result of employers' attempts to keep their employees happy and content. In this effort employers raise their employees' wages above the prevailing rate. This creates a demand for those positions that exceeds their availability. In response, unemployment is again created.

Finally, the process of seeking employment actually creates some measure of unemployment. Job seeking requires time and energy and those seeking jobs are limited in their ability to maintain other employment. Thus, unemployment develops as those seeking employment forego other employment in order to procure the position they truly want.

The fact that there is a relationship between unemployment and the economy is clear but the precise nature of this relationship is still not fully understood.

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The variables are many and not fully understood by even the most experienced and best educated of economists. If the relationship were fully understood unemployment levels could be controlled and the economy would never suffer through a recession. Needless to say both occur and, to date, both have proven resistant to control......

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