1. Frictional unemployment: This type of unemployment occurs when workers are in between jobs or transitioning from one job to another. It is natural and often temporary as individuals search for new employment opportunities that align with their skills and qualifications.
2. Structural unemployment: Structural unemployment results from mismatches between the skills of available workers and the requirements of available job openings. This can happen when industries decline or shift, leaving workers with obsolete skills that do not match the available job opportunities.
3. Cyclical unemployment: Cyclical unemployment is caused by fluctuations in the business cycle, with periods of economic downturn resulting in layoffs and job loss as businesses reduce production and cut costs. This type of unemployment tends to be more severe during recessions and economic downturns.
4. Seasonal unemployment: Seasonal unemployment occurs when certain industries or occupations experience fluctuations in demand based on the time of year. For example, agricultural workers may be unemployed during the off-season or retail workers may be laid off after the holiday shopping season.
4 types of unemployment
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