Structural unemployment is hard to distinguish from frictional joblessness except for the reason that it lasts longer. For the frictional employment a simple stimulus on the demand side cannot easily normalize this kind of unemployment. Structural unemployment can also be accelerated by importunate cyclical unemployment. Cyclical unemployment is a situation where an economy undergoes an extensive aggregate low demand of labor and this means that those who are unemployed become discouraged while their skills turn out to be obsolete and ‘rusty’. Debt problems some times leads to homelessness and a fall into poverty and this means that workers may not be able to fit the job opportunities that may be available when the economy gets to recover. The implication of this is that the extended high demand may lead to low structural unemployment. The theory of perseverance in structural unemployment is referred to as a model of path dependence.
Structural unemployment also entails a great deal of technological unemployment. This happens as a result of replacement of workers by machines and a few other workers who work on the machines. On the other hand, technological unemployment may also refer to the increases in the productivity of labor. This means that few workers are now needed for the production of the same amount of output at the same period of time. The fact that raising the aggregate demand could be a solution to this problem, gives a suggestion that this is one of cyclical unemployment problem. Structural unemployment is one of the five distinguished types of unemployment by economists and it is considered to be one of the permanent forms of unemployment and improvement on it is only executable in the long run.
There are a number of possible solutions to unemployment that can be put in place by the companies to deal with unemployment. First and foremost, companies should provide to the workers enabling and conducive environments. To help companies achieve this, the government should come in to enact friendly and fair laws for entrepreneurship so as to bring to the rise influx of the companies into the country. Companies should come up with manufacturing processes that are dominated mostly by the workers, both skilled and unskilled in various areas of specialization within the company.
To reduce the unemployment issue, companies should carry out research towards producing something new. Companies should also train workers to be creative, to create some new products or to improve on the existing products and in a more modern way and in a better way for consumption. Out of these efforts a worker will be able to earn his/her daily bread without many hassles.
It is obvious that economy will and has wrecked havoc for sometime and the IT department of any business premise is not immune to these economic effects. The department is most of the times held with the same responsibility of service levels and it is to perform them with or without financial support or financial resources. In order for a company to advance its information technology, there must be an ability to perform excellently under such conditions, which by no way is not possible. Some measures can be put in place to cut on It related costs across many areas of the company and therefore help the company to attain information technology advancement.
A company seeking to achieve information technology advancement should try as much as possible to cut down on Telecommunication costs and mobile service costs. In reducing this type of cost, the first step is performance of audit of all mobile bills and telecommunication expenses at regular intervals. It is the responsibility of the department to find out and to do away with those errors. Mostly such errors include expenses as a result of unnecessary calls on phone and access to the internet, paying for services contracts which are no longer in use and the worst of all paying twice for the same service. Quick audit of company expenses should create savings for the company and this would help it weather through economic storms.
The second step should involve eliminating or reducing issuing out of cell phones for use in business transactions. It’s undeniable that there is need of workers to communicate critical business information between them, but by altering the focus of charges containment the company can achieve great savings. Companies should place policies on the usage of cell phones in order to cut down on cost. (Finegan, 1978)The hard part of it is that in pursuit of this, there are rising back-end charges in scrutinizing tasks for the finance department and for the IT department. The solution to this is to put in place different settlement policies on the cell phones that are already owned by the workers. For instance 50% can be provided over a period of time that the worker was an official duty up to a given limit. Another good example is for a worker on a business mission to give an ongoing list of business related numbers that the worker communicated to over a business outing which will be settled for in full. This strategy will change the direct cost of communication by a substantial amount.
The third step is to modify the policy that deals with international calls roaming. With the fast globalization of business the need for workers to take a trip abroad is to be anticipated. Roaming. A feasible solution is for the company to purchase SIM cards that have local carriers and can use rental phones. Using prepaid airtime and making use of local carrier SIM card slashes steeply the cost of any call per minute.
Evaluation and renegotiation of telecommunication telephone services is a step to reducing costs of communication. A company should identify the essential services that it must have from a service provider. Then a group of providers should be chosen according to the type of support they provide and according to their price options. This will enable the company to acquire services of the right provider and this should be followed by settling for the best feasible contract. The goal here is to get into a new deal that offers better pricing in a short span of time hence immediate savings that are dependent on factors such as commitments in spending, length of contracts, commitment of support level, and provisions of price reduction (Finegan, 1978).