Employment

Question 1

What is employment?

Answer 1

Employment refers to the number of people who are actively working and receiving wages for their work.

Question 2

What is frictional unemployment?

Answer 2

Frictional unemployment is short-term unemployment when people are transitioning between jobs or entering the workforce for the first time.

Question 3

What is structural unemployment?

Answer 3

Structural unemployment is long-term unemployment caused by changes in industries, like technological advancements or outsourcing.

Question 4

What is cyclical unemployment?

Answer 4

Cyclical unemployment occurs due to a decrease in aggregate demand during an economic downturn (recessions).

Question 5

What is seasonal unemployment?

Answer 5

Seasonal unemployment occurs in industries where demand fluctuates with the seasons (e.g., agriculture, tourism).

Question 6

What is full employment?

Answer 6

Full employment occurs when the economy is operating at an optimal level, where everyone who wants a job can find one, and only frictional and seasonal unemployment exist.

This does not mean zero unemployment; it reflects the natural rate of unemployment.