Chapter 3 Flashcards
What is frictional unemployment?
difficulty in matching workers with jobs, perhaps due to lack of knowledge about job opportunities. Frictional unemployment is temporary.
What is seasonal unemployment?
Demand fluctuates in seasonal patters eg building, tourism, farming
What is structural unemployment?
Long term changes occur in an industry - high unemployment in region affected
What is technological unemployment?
Form of structural unemployment - old skills not needed, labour saving aspect through use of machines
What is cyclical unemployment?
Business cycle - boom, bust , recession, decline, recovery
What is real wage unemployment?
when supply exceeds demand but real wages dont fall. usually caused by strong trade unions