Types of unemployment

Question 1

Frictional

Answer 1

occurs when individuals are temporarily between jobs or are searching for a new job that better matches their skill.

Question 2

structural

Answer 2

occurs when there is a mismatch between worker’s skills and the skills needed for available jobs. (long term)

Question 3

cyclical

Answer 3

occurs when there is a decline in economic activity during a recession or downturn. (due to the business cycle)

Question 4

seasonal

Answer 4

occurs when jobs are only available during certain seasons of the year

Question 5

classical

Answer 5

when the wages are high & they cant manage to pay all their employees. (can also be government policies)