Types of unemployment 1 an

cyclical, frictional, seasonal, structural

4 types of unemployment

cyclical or Demand Deficient unemployment

this type of unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn

frictional

this type of unemployment is short-term unemployment that occurs when workers look for new employment or transition out of old jobs and into new ones

seasonal

this type of unemployment are predictable changes in unemployment that occur over a one-year period in a business or economy based on the seasons

structural

this type of unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an economy

labour immobility

the difficulty or inability of workers to move between different jobs or locations

geographical and occupational

two types of immobility of labour

fewer orders for goods=>firms produce less=>less demand for new workers=>firms try to cut costs to stay afloat=>firms cut back on employing new staff=>some firms go out of business=>workers lose their jobs

The process of cyclical unemployment

consumer confidence, unemployed, falling demand, rising

Demand Deficient or Cyclical unemployment is the rise in unemployment that causes a decline in __________ ____________ as households worry that they may be ________________. It can create a cycle of __________ __________ and ________ unemployment

demand deficient, economic growth

you can have _______ ___________ unemployment and _____________ _______ at the same time

new entrants into labour market, search for greater meaning, looking for new/better jobs, unemployment benefits

Causes of frictional unemployment

allows more pickiness in choosing new employment

How does unemployment benefits cause frictional unemployment?

difficult for companies to retain talent, changes in livelihood, when economy is flourishing there are more opportunities

Impact of frictional unemployment

covid-19 made many reflect on how they wished to live

Example of how frictional unemployment causes changes in livelihood

youth unemployment, i.e. France, and hysteresis unemployment

Big issues with cyclical unemployment

hysteresis unemployment

refers to the phenomenon where past periods of high unemployment can have lasting effects on the current and future unemployment rates, even after the economy recovers.