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Frictional unemployment
is the portion of unemployment that is due to the normal working of the labor market; it reflects short-run job/skill matching problems.
Structural unemployment
is the portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries. (more jobs repairing computers,
fewer jobs repairing typewriters)
Cyclical unemployment
is the increase in unemployment that occurs during recessions and depressions.
natural rate of unemployment
is the unemployment that occurs as a normal part of the functioning of the economy.• Is sometimes thought of as the sum of frictional unemployment and structural unemployment.
Labor-saving robots are introduced into a car assembly line. The resulting unemployment is
structural
The demand for cars falls when the economy enters a downturn. If a car company lays off workers during an economic downturn, this would be an example of
cyclical
A man is fired from his job because he was late for too many times. While he is looking for another job he would be classified as
frictionally