Types of Unemployment

Cards (5)

  • Frictional Unemployment
    Unemployment associated with job search i.e with people who are between jobs (due to supply)
  • Structural Unemployment
    Arises because some industries within an economy are in decline and others are growing, but labour markets haven't adapted yet (Due to supply)
  • Cyclical/ demand-deficient unemployment

    Results from low aggregate demand in the economy, or a dip in the business cycle (due to demand)
  • Voluntary unemployment
    A situation where a individual chooses not to accept a job at the going wage rate
  • Seasonal unemployment
    This type of unemployment varies during the year. In some industries such as farming and tourism , there may only be work in the summer (due to demand)