Frictional Unemployment
This type of unemployment occurs when workers leave their old jobs but haven’t found a new one yet. This happens mostly when workers look for a better job. This type of unemployment
Structural Unemployment
The type of unemployment happens when there is a mismatch between what the employer expects and what employees have. Mostly due to change of technology, for example with the introduction of computer, those works done by typewriters were shifted to computers.
Cyclical Unemployment
During the contraction phase of
Seasonal Unemployment
The name says it all, unemployment due to change in season. Farmers during non harvest time, resort workers during
Classical Unemployment
Popularly known as Induced unemployment or Real wage unemployment. It occurs in one of these three situations:
- when Trade Unions negotiate higher salaries and benefits.
- Due to the recession, the agreed amount to be paid by the management has hiked.
- The government sets a minimum wage that’s too high.
Underemployment
Underemployed workers have jobs, but they aren’t working to their full capacity or skill level. To satisfy the basic needs underemployed workers would have end up in doing jobs which
Voluntary Unemployment:
Voluntary unemployment happens when people are unwilling to work at the prevailing wage rate, it also includes people who are lucky enough to get a continuous flow of unearned income from their unemployed status. Jobs are available for them but they do not want to accept them.
Chronic Unemployment:
Long term
