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
* _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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