Types of unemployment

Question 1

What is Seasonal

Answer 1

• caused by seasonal workers not bein employed this season

eg. tourism industry,in summer resorts tend to hire more workers as there is more demand

Question 2

What is Frictional

Answer 2

-when workers leave jobs but dont start immediately meaning +timelags between moving jobs+

Question 3

What is Structural

Answer 3

-caused by a permanent decline of an industry
-long term–> problems in economy
hard to find job vacancy due to lack of skills to gain these it takes time/geographically immobile
occupational immobility

Question 4

What is Cyclical

Answer 4

• caused by lack of demand in the economy
• demand for goods/services fall–>fewer workers required–>unemployment–>lower incomes–>less spent (less demand) and cycle continues