Theme 2.3: Unemployment

Question 1

Frictional unemployment

Answer 1

Unemployment of those who just left their job, those who are just coming back into the job market, and those who are in the process of obtaining a job for the first time

Frictional is a normal part of the economy

Question 2

Cyclical unemployment

Answer 2

Unemployment that rises and falls with the business cycle.

Cyclical unemployment is a short term phenonemon

a reason why policy makers try to avoid recessions

prompts monetary and fiscal policy to maintain growth

Question 3

Seasonal unemployment

Answer 3

Unemployment that occurs because the need for workers falls at certain times of the year

Question 4

Structural unemployment

Answer 4

Unemployment caused by long term changes in the structure of the economy.

such as the rise and fall of a particular industry

ways to reduce it are through investment and infrastructure to provide jobs from people who are displaced from dying industries.

Education and training can equip people to find employment in newly emerging sectors of the economy