2. What is unemployment?
Unemployment is when workers who are capable and willing
to work are unable to find employment.
It is the unavailability of work even though there is a desire by
those people to find work.
3. The four types of unemployment
• Frictional Unemployment
• Structural Unemployment
• Cyclical Unemployment
• Seasonal Unemployment
4. Frictional Unemployment
Frictional unemployment occurs when a worker loses their
current job and is in the process of finding a new one , or looking
for a job for the first time. This type of unemployment usually
lasts for a short time.
• Example: A student who has just finished school or graduated.
5. Structural Unemployment
Structural unemployment occurs when there are changes in
technology and so me workers are fired because they do not
know how tp use the new technology, cannot adapt to it, or are
replaced by it.
Example: Workers in the printing department of a newspaper factory were
let go after the company decided to shift from print to digital newspapers.
6. Cyclical Unemployment
Cyclical unemployment is a result of cyclical changes or fluctuations in the
economy.
Example: During an economic recession, many workers will lose their jobs.
When the economy recovers these workers may find jobs again
7. Seasonal Unemployment
Seasonal unemployment occurs when some workers are not able
to find jobs during some months of the year.
Example: Fruit farmers only use fruit pickers during the harvest.