Types Of Unemploymen

Question 1

Frictional / Job search

Answer 1

People who are between jobs either because they have just left one job but not yet found another or have just become economically inactive

Question 2

Seasonal

Answer 2

Demand for certain type of labour only exist at certain time of year

Question 3

Structural

Answer 3

Caused by a change in the structure of the economy. The demand for certain type of labour no longer exist

Question 4

Technological

Answer 4

Workers being replaced by machinery

Question 5

Demand deficient

Answer 5

Caused by a lack of aggregate demand and falls during recovery growth.

Question 6

Cyclical

Answer 6

Bulk of unemployment caused by a recession

Question 7

Real wage

Answer 7

Caused by wages being too high for the labour market to clear

Question 8

Classical

Answer 8

If the minimum wages causes unemployment

Question 9

Geographical immobility of labour

Answer 9

Workers cannot relocate to where there is demand for their labour.

Question 10

Occupational immobility of labour

Answer 10

Workers cannot switch to another job

Question 11

Labour may be geographically immobile

Answer 11

Difference in housing cost
Social ties
Cultural or relgious ties
Elderly