diff types of unemployment

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7 Terms

1
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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.

2
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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)

3
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Cyclical unemployment

is the increase in unemployment that occurs during recessions and depressions.

4
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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.

5
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Labor-saving robots are introduced into a car assembly line. The resulting unemployment is

structural

6
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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

7
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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