Archive for the ‘Unemployment’ Category

Types of Unemployment

Tuesday, May 6th, 2008

Structural unemployment occurs when an economy of a country does not have the capacity to employ those people who are seeking work. The solution would be to increase businesses and industries so that economy would grow and thus increase its capacity to employ more people. Where there is sever structural unemployment the workforce tries to migrate to countries where there is employment available.

Cyclic unemployment occurs when there is a recession in the economic cycle in an economy. This usually could be solved within a few months to a year or two, when the economy grows again.

Frictional unemployment occurs when people are unemployed while changing jobs. This type of unemployment usually is not that important as this is short lived and there is opportunity to get employed in a short period of time.