Types of Unemployment

Cyclical Unemployment

Caused by a downturn in the business cycle

Structural Unemployment

Occurs because of a mismatch between the skills demanded by employers and those possessed by unemployed people

Long-term Unemployment

An individual must have been unemployed for a period of 12 months or more

Seasonal Unemployment

Occurs because of the seasonal nature of some jobs

Frictional Unemployment

Unemployment occurs as people change jobs, moving from one job to another

Hard-core Unemployment

Refers to those individuals who might be considered unsuitable for work because of personal reasons such as mental illness, physical disabilities or drug addiction

Hidden Unemployment

Refers to those individuals who are not counted in the official unemployment figures because they have given up actively seeking work or have gone back to school.

Underemployment

Individuals who have part-time or casual jobs but would like to work more hours per week.