What is the difference between structural unemployment and friction unemployment?
It is well documented the nature and severity of the pervasive unemployment worldwide, both in developing and developed countries. The general knowledge is that there are two types of unemployment, namely structural unemployment and friction unemployment. The former one refers to the kind of situation that the graduate students do not match the type of those demanded by the company; the latter one refers to the unemployment that results in the time spent in finding a suitable job, which is often the consequence of indusial transform. Analysts agree on the idea that the structural unemployment is more dangerous in the sense that the unemployed are thought to possess lower or unsuitable skills that are required in the marketplace and it occurs even among young and better-educated people. Due to the technological progress and the pressure of global competition, there will be an increasing demand for skilled workers. Thus the unemployment problem is not likely to be solved in easily. In a research, it is demonstrated that leadership, commercial awareness, communication skills, and foreign language are the most needed but shorted four skills among the graduate.
To gain the skills mentioned above, there are mainly two ways of training:
- On-the-job-training: as the University of Sunderland stresses in the personal future development, this is taking an important portion of my study here. PALS is the product of this awareness, which integrates many training methods in it. Take foreign language skill as an example, although I am an overseas student, I get many chances to practice my English, and when I lose the confidence or motives, I will regain them from the coach and my group members.
- Off-the job-training: this type of training covers a wild range of subjects, which are outside the work premises. Orientation activity, reading, case study, films and radios and other multiple types of activities are included. For developing commercial awareness as an example, one of our tasks was reading business magazines and learning online.