Unemployment Flashcards
What are the 6 types of unemployment?
Structural.
Seasonal.
Technological.
Frictional.
Real wage.
Demand-deficient.
What is occupational immobility?
When there is a lack of ability of workers to change job sectors.
What is geographical immobility?
When there is a lack of ability of workers to move from one area to another.
What is demand-deficient/cyclical unemployment?
Occurs when there is not enough demand to employ all those that want to work. It varies with the economic cycle. Boom = lots of demand = lots of employment.
What is seasonal unemployment?
When employment is only in demand for a short period of the year. Most common in hospitality and tourism.
What is frictional employment?
When someone looses their job or chooses to loose it and has to look for another.
The more efficient the job market is matching people to jobs, the lower the frictionality.
What is technological unemployment?
The use of technology resulting in job losses. E.g manufacturing industry.
What is structural unemployment?
Occurs when the structure of the industry changes due to changing tastes, lack of demand or technology moving on.
What is real wage unemployment?
When real wages for jobs are forced above market clearing level.
