What are the three types of unemployment explain briefly?
Answers
Structural Unemployment
Structural unemployment describes a form of unemployment that arises from a mismatch between the skills offered by workers and the skills demanded by employers. This situation usually occurs because of changes in demographics, industrial reorganization, or technological innovation. To adapt to those changes, firms constantly need new skills while some existing skills become outdated. As a result, some workers will find it hard to get a new job, because their skill set is simply not needed anymore.
Cyclical Unemployment
Cyclical unemployment is a form of unemployment that relates to cyclical trends in the business cycle. Whenever the economy contracts (i.e. falls into a recession) unemployment increases, because firms have to lay off workers in order to cut costs. However, cyclical unemployment is temporary. That means, once the recession is over, many of the workers have a good chance to find another job in the same field.
Frictional Unemployment
Frictional unemployment describes a form of unemployment that arises due to workers who are in the process of moving between jobs. This includes workers who voluntarily quit their job to look for a better one, people who are on job search because they just recently moved to a new area, etc. There are plenty of reasons why people move from one job to another. Therefore, it is important to note that frictional unemployment can never be fully eliminated. The reason for this is that in reality, information is always imperfect. This makes the process of finding a job complicated and time consuming.
1. Seasonal unemployment: When people are not able to find jobs during some months of the year. people dependent on agriculture usually face such kind of problem. there are certain busy seasons when sowing,harvesting,weeding and threshing is done. certain months do not provide much work to the people dependent on agriculture.
2.Disguised unemployment: In case of disguised unemployment people appeared to be employed. they have agricultural plot where they find work. this usually happens among family members engaged in agricultural activity.
3. Educated unemployment: In case of urban areas educated unemployment has become a common phenomenon. many youth with matriculation, graduation and post graduation are not able to find jobs.
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