Types of unemployment TST assignment.pptx
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There are four main types of unemployment: frictional, structural, cyclical, and seasonal. Frictional unemployment occurs when workers are between jobs. Structural unemployment happens when technological changes eliminate certain jobs. Cyclical unemployment results from economic downturns that cause widespread job losses. Seasonal unemployment affects workers in industries like agriculture that only operate during certain times of the year.
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The document discusses different types of unemployment:
- Frictional unemployment occurs when people transition between jobs.
- Structural unemployment is caused by shifts in the economy that make workers' skills obsolete.
- Seasonal unemployment affects industries that slow down during certain seasons.
- Cyclical unemployment rises during recessions as spending decreases and companies lay off workers.
It also explains how the unemployment rate is calculated by taking the number of unemployed people as a percentage of the labor force. The goal of full employment is for everyone who wants a job to have one, though the rate may still be 4-6% to allow for frictional unemployment.
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- Cyclical unemployment increases during economic downturns when companies lay off workers due to less spending and production.
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It also explains how the unemployment rate is calculated by taking the number of unemployed people as a percentage of the labor force. The goal of full employment is for everyone who wants a job to have one, though the rate may still be 4-6% to allow for frictional unemployment.
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For example, John who worked at a factory for 3 years but was laid off last month due to the plant closing would qualify for benefits because he lost his job through no fault of his own. However, Susan who quit
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- 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.
- 8. Conclusion Frictional Unemployment Seasonal Unemployment Cyclical Unemployment Structural Unemployment
- 9. References • Muhammed, F (2015). Types of Unemployment 2. Slideshare. https://www.slideshare.net/farooqpirsai/types-of-unemployment-2-52883394?qid=1f16fa16- 74ab-4833-b8e7-5403881ca1b7&v=&b=&from_search=6 • Bhosale, R (2014). Unemployment. Slideshare. https://www.slideshare.net/RohanBhosale4/unemployment-32204666?qid=419974ce-bafe- 48f0-8d0c-7aadee50a43e&v=&b=&from_search=5 • Afodume, C (2014). Types of Unemployment. Slideshare. https://www.slideshare.net/FaithMartin12/types-of-unemployment-72721832?qid=f0174f51- cf71-41d8-af08-2e1529f22753&v=&b=&from_search=7 • Lakshmi, D (2012). Ppt on unemployment. Slideshare. https://www.slideshare.net/manav500/ppt-on-unemployment?qid=2794616f-bd78-46d5-bf5d- 65f360876719&v=&b=&from_search=4 • Vellore Institute of Technology, (2019). Slideshare. https://www.slideshare.net/DrJBalamuruganPhD/unemployment-160200996