Different types of Unemployment
Unemployment | Macroeconomics
Unemployment is the condition in which resources are willing and able to produce goods and services but are not engaged in productive activities. Analysis of unemployment especially labor employment goes hand in hand with the study of macroeconomics that emerged from the Great Depression 1930s.
Various types of Unemployment are as follows:
a. Cyclical Unemployment: This type of unemployment occurs high during recessions and depressions, and low during period of economic growth.
b. Frictional Unemployment: This type of unemployment occurs when workers take some time to move from one job to another job.
c. Seasonal Unemployment: This type of unemployment occurs because the demand for some workers varies widely over the course of the year.
d. Structural Unemployment: This type of unemployment occurs because some labor markets have more workers than the job available. Wages do not decrease to bring the market in equilibrium.