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The market economy is unstable, so there are such phenomena as unemployment, rise in prices and inflation. Unemployment is a macro-economic problem that affects every person. Job loss leads to a reduction of the living standard of a person and his family causing psychological trauma.

Unemployment is the lack of job and opportunity to find it. That is, the unemployed is an active capable person who strives to get a job, physically has the opportunity to work, but does not have any.

In order to calculate the number of the unemployed in the country, the population is divided into several groups depending on the degree of labor activity. The first group includes the economically inactive population. These are the citizens who are not considered the labor force: high school students and full-time university students, pensioners, housewives, women on maternity leave.

The group of economically active population consists of capable citizens who are willing to offer their labor power. This group includes both employed people and the unemployed. Economists define three main causes of the unemployment: the dismissal, voluntary leave and supply of someone’s labor power on the labor market for the first time.

There are three types of the unemployment: frictional, structural and cyclical.

There are other kinds of unemployment, but we'll talk about these.

1. Frictional unemployment is a temporary state of a specialist who is looking for a job. This process certainly requires a lot of time and efforts, its main reason is the lack of information about available job openings.

2. Structural unemployment is a result of structural changes in the economy. The development of science and technology leads to the disappearance of some sectors of production and services, and the emergence of the others. By and by, the demand for a particular kind of products changes in the country. New demanded professions appear.

3. Cyclical unemployment is associated with reduction of the production scale. The increase of its level actually means the economic downturn in the country and leads to a backlog of GNP comparing to its size applied in the state budget for the current year.

In the United States the unemployment rate has been steadily declining thanks to the creation of thousands of part-time and full-time jobs. According to the Government, the number of jobs is growing in the branches of food industry, healthcare, retail, business services and building. At the same time the number of capable people in the labor market reduces, which is associated with getting additional education, retraining, transition to disability.

Currently, there is a trend of unemployment rising in Western Europe, especially among young people. Job loss at a young age inflicts considerable psychological "wounds" and reduces the chances of the young specialist to find a well-deserved job in the future. In Europe there is also a growing number of the long-term unemployed, i.e. people who are out of work for more than a year.

Unemployment has serious consequences, both for the state and for the person left without a source of income. A person experiencing financial difficulties due to the job loss is exposed to the stress, various diseases; there may be disagreements in his family. Lack of money pushes some people to committing a crime.