Impact of Internet on Unemployment

Currently, job recruitment services have shifted from the conventional manual paper work, to a new era where companies continue to use the cost cutting advantage of internet services to advertise job opportunities in their websites, or through online recruiting companies. Therefore, when the government avails free internet and mobile phones to the unemployed people it will drastically reduce unemployment rate by a large margin.

Kuhn & Skuterud (2004) assert that the low cost, high contact rate and extensive information provided through the internet leads to much lower frictional unemployment, reducing noncompetitive wage differentials, and a much higher match quality. This is mainly attributed to the low cost involved when companies advertise jobs online compared to the use of conventional print media. Companies have an instant access to a large number of people matching the needed qualifications compared to advertising through print media. As Kuhn & Skuterud noted, by 2000 one in every four job seekers confirmed to have used the internet constantly to search for job vacancies.

Stevenson (2008) asserts that with improvement of the internet platform, the employment-to-employment transition increased among the employed individuals. Therefore, the employed people by having more access to free internet in their respective companies, they are in a better position to send their application details to multiple companies, leading to the high job transition rate.   

Kun & Monsour (2011) reported that internet job search has proved to be more effective, reducing the workers’ unemployment duration by up to 25%. This is mainly achieved when internet is used to send out resumes, and for filling job application forms. The drastic change in use of internet to source and advertise jobs is portrayed by the difference of people who used internet to search for jobs between 1998/2000 and 2008/2009, which increased from 24% to 74% respectively. As Stevenson (2008) noted, this increase may be explained by the fact that in the last ten years, job search behavior involved job seekers spending more hours on the internet platform visiting recruitment agencies and company websites. This portrays the significant impact of the internet platform on job seekers, and the promise that the platform has to the unemployed related to finding one’s dream job.

Research as indicated has shown that individuals with constant access to internet services have a better chance of securing an employment opportunity. This is because job advertisements and recruitment has currently shifted to the internet platform. Therefore, by availing constant and free access to internet services and free mobile phones, the government would significantly reduce the unemployment rate in the economy of a country.


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