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Module 1: Economics and employment

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Types of unemployment

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XSIQ
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Economics - Types of unemployment

Types of unemployment

* _Frictional unemployment._ This is the time between when a person
voluntarily leaves a job and finds a new one.

* _Seasonal unemployment._ Some people become unemployed in the 'off
season', e.g. fruit pickers become unemployed because they have no other
skills.

* _Hardcore unemployment._ This occurs when employers refuse to employ
people due to certain personal characteristics of the potential workers,
such as having a criminal record or a drug addiction.

* _Cyclical unemployment._ This term is based on the business cycle. J.M.
Keynes believed a drop in the business cycle and, therefore, a drop in
demand and production cause this type of unemployment. It is where
aggregate demand falls.

* _Structural unemployment._ This is where the structure of the industry
changes, that is, the way goods and services are produced changes. This
results in a mismatch between the skills of the existing workers and the
skills required to do the job.

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