Types of unemployment

Real wage or classical unemployment

Real wage unemployment is when the wage is above the equilibrium wage. This creates an excess supply of labour also known as unemployment.

Cause for real wage u

• Gov NATIONAM MIN WAGE

• TRADE UNIONS PROTESTS ETC HIGHER WAGES

Cyclical unemployment

Demand deficient unemployment is also known as cyclical unemployment. It occurs when there is not enough demand in the economy. This causes firms to reduce their derived demand for labour, creating unemployment.

Structural unemployment

Structural unemployment occurs when the structure of the economy changes and jobs shift from one sector to another.

2 causes for structural unemployment

• occupational immobility

• geographical immobility

occupational immobility

Occupational immobility is when workers can’t move between different jobs because they lack the skills needed.

geograhical immobility

Geographical immobility is when workers struggle to move between different areas

frictional unemployment

Frictional unemployment is when people are temporarily unemployed while searching for a new job.

seasonal unemployment

they only work during certain seasons and during some seasons find theirselves uemployed