3.4 (Pt. 2) - The Four Unemployment Types Flashcards
What is the first type of unemployment and what is it about?
The first type of unemployment is called ‘Frictional Unemployment.’ It occurs when workers transition between one occupation to the next, as it takes time.
What are two examples of ‘Frictional Unemployment?’
Two examples of ‘Frictional Unemployment’ include:
- When students move from education into the workforce full-time
- When workers leave their new job to move into a new area, and attempt to find a job there
What is the second type of unemployment and what is it about?
The second type of unemployment is called ‘Cyclical Unemployment.’ It occurs when workers get laid off due to the economy being in a period of downturn or recession due to a lack of demand for goods and services.
What are two examples of ‘Cyclical Unemployment?’
Two examples of ‘Cyclical Unemployment’
include:
- COVID-19 causing many businesses to shut down and many workers to get laid off, due to a lack of funds
- When a business can’t afford to pay many workers, so the business has to lay off some of them
What is the third type of unemployment and what is it about?
The third type of unemployment is called ‘Structural Unemployment.’ It occurs when workers don’t have the skills and experience required for available jobs.
What are two examples of ‘Structural Unemployment?’
Two examples of ‘Structural Unemployment’ include:
- Certain courses requiring a certain degree, TAFE, or work experience when applying
- When injuries and illnesses prevent workers from doing certain jobs for their safety
What is the fourth type of unemployment and what is it about?
The fourth type of unemployment is called ‘Seasonal Unemployment.’ It occurs when workers are only needed for a certain period of time, according to the season.
What are two examples of ‘Seasonal Unemployment?’
Two examples of ‘Seasonal Unemployment’ include:
- Agricultural workers that are only required when the crops they’re assigned to are in-season
- Seasonal casual workers that may or may not be laid off due to how well they performed during their initial period (eg. Christmas)
