Types of Unemployment

Cyclical Unemployment

Unemployed due to a downturn in overall economic activity.

Structural Unemployment

Unemployed because their human capital does not match the needs of employers hiring in the labor market.

Frictional Unemployment

Unemployed because they are graduating from high school or college, looking for better working conditions, or seeking a higher wage.

Seasonal Unemployment

Unemployed because employers need their type of human capital during only one part of the year

A professional pencil sharpener was laid off because his/her employer bought an electric pencil sharpener.

Structural

In May, thousands of college graduates enter the labor market looking for their first professional job. This happens every May, year after year

Frictional

Agricultural workers seek new jobs when the harvest season is finished.

Seasonal

Thousands of restaurant workers lose their jobs because a recession has reduced the number of consumers who can afford to eat out.

Cyclical

Thousands of high school students graduate without the literacy and math skills needed by the labor market. This happens every year.

Structural

A lawn care worker in Michigan was laid off during the winter.

Seasonal

25% of teachers were laid off due to economic depression.

Cyclical

A beach lifeguard was laid off during the winter.

Seasonal

Someone who has left a job because they were unhappy with their current wages in order to look for a job with higher wages

Frictional

If people decrease the number of cars they purchase due to a recession, the car manufacturing plants will lay off workers because they do not need to produce as many cars.

Cyclical

If a manufacturing job requires a worker to be capable of reading technical equipment manuals, but the worker lacks basic literacy, the worker will be unable to fill that position.

Structural

Workers quits his/her job to look for better working conditions.

Frictional