Types of Unemployment

Frictional

Workers leave their old jobs without a new one, occurs with students looking for a first job or mothers returning to workforce

Structural

Shifts in economy create a mismatch between skills people have and skills needed

Cyclical

Caused by low demand and a need to lay off workers, creates more unemployment due to laid off workers having less money and decreasing demand

Natural

Consists of frictional and structural unemployment, people are always changing jobs sometimes because of skills being not needed

Long-Term

Looking for a job for over 27 weeks, has devastating effects on worker morale, productivity, etc

Seasonal

Has a job specific to a season, ie. ski instructors or people who harvest crops.

Classical

When wages are so high that employers need to hire less workers, people who are laid off are often victims of classical unemployment

Under

Workers who have jobs but are not working to full skill or ability, often caused by cyclical unemployment and a need for any job, not specifically a job that has a fitting demand