Hardcore unemployment – definition and meaning
Hardcore unemployment refers to unemployment among individuals who have been jobless for a long time. These people are also the least likely to find or want jobs. We often use the term colloquially and include people who have never had full-time jobs.
Many countries exclude hardcore unemployment figures from their official unemployment statistics.
Many hardcore unemployed individuals lack the necessary skills that the job market seeks. Either their skills have become obsolete, or they simply have no skills at all.
In many economies, including the developed nations, hardcore unemployed people are not eligible for unemployment benefits.
According to ft.com/lexicon, hardcore unemployment is:
“Unemployment among people who have been without work for a long time and who are the least likely to want or find jobs.”
Hardcore unemployment and different types
There are several different categories of unemployment.
Classical unemployment occurs when demand for jobs is greater than the number of available positions. In other words, there are more people seeking jobs than there are jobs available.
Economists have put forward many reasons for this type of unemployment. For example, if the minimum wage is too high, there might be many potential jobs out there that do not exist.
Put simply; employers in many companies cannot afford to take on more workers.
This type of joblessness fluctuates according to the business cycle. The business cycle or boom-bust cycle, refer to the alternating periods of recession and recovery that economies experience.
When economic growth slows down, or GDP shrinks unemployed rises. However, when GDP growth accelerates, unemployment declines. GDP stands for Gross Domestic Product.
Frictional unemployment consists of individuals who are between jobs. In other words, they are still attending interviews, sending resumes, and searching for their ideal job.
When unemployment is extremely low, frictional unemployment is relatively high. It is high because people spend longer looking for their ideal position. They spend longer because they are not worried about ending up without any job.
However, when unemployment is high, frictional unemployment is low. People are less fussy and want to get back to work as soon as possible.
There is always a proportion of the population that is unemployed. They are unemployed either because they do not want to work or can’t. For example, those who can’t work may include people with mental or physical disabilities or those whose skills have become obsolete.
Long-term caregivers may also find it harder to get a job. However, thanks to modern technology and the Internet, the number of teleworking vacancies has increased considerably.
Teleworking refers to working at home, in a cafe, a train, i.e., away from where the employer is.
Video – hardcore unemployment
In this Real Stories video, Brian Woods looks at the lives of some hardcore unemployed people.