2.3 UNEMPLOYEMENT (TYPES) Flashcards
whats unemployment
people who are economically active but not in employment
what does it mean to be economically inactive
people who aren’t looking for work due to a variety of reasons
whats a discouraged group
individuals that have stopped actively seeking work due to challenges like long term unemployment or limited job opportunities
what are some causes of unemployment
- technological advancements leading to job automation
- changes in consumer demand affecting industries
- structural issues in the labour market
what is supply side unemployment
the unemployment causes by factors such as mismatches between the skills of job seekers and the requirements of available jobs
what is demand side unemployment
unemployment resulting from insufficient demand for goods and services in the economy, leading to reduced production levels and layoffs by businesses.
whats frictional unemployment
the temporary unemployment when people are in-between jobs or entering the workforce for the first time
whats structural unemployment
unemployment that arises from a mismatch between the skills and qualifications of job seekers and the requirements of available job opportunities
whats seasonal unemployment
occurs when certain industries or jobs are affected by seasonal fluctuations in demand, leading to temporary layoffs or reduced employment during specific times of the year
what is real wage / classical unemployment
the situation where the wage rate is higher than the market equilibrium wage, leading to an excess supply of labor (unemployment) as employers are unwilling to hire at the higher wage level
what is cyclical unemployement
unemployement during economic downturns or recessions where there is a decrease in overall demand for goods and services leading to layoffs or job losses
