Question

what are the type of unemployemnt and explain them?

Answer 1

$ASSALAMUALAIKUM$


There are three main types of unemployment: structural,frictional, and cyclical. The first two make up the naturalunemployment rate. The third rises when demand falls, usually during a recession. Some economists define as many as six additional types of unemployment, such as seasonal and classical.

1) structural unemployment :- Structural unemployment exists when shifts occur in the economy that creates a mismatch between the skills workers have and the skills needed by employers.

An example of this is an industry’s replacement of machinery workers with robots. Workers now need to learn how to manage the robots that replaced them. Those that don't learn need retraining for other jobs or face long-term structural unemployment

2) frictional unemployment :- Frictional unemployment occurs when workers leave their old jobs but haven't yet found new ones. Most of the time workers leave voluntarily, either because they need to move, or they've saved up enough money to allow them to look for a better job.

Frictional unemployment also occurs when students are looking for that first job or when mothers are returning to the workforce. It also happens when workers are fired or, in some cases, laid off due to business-specific reasons, such as a plant closure.

3) cyclical unemployment :- Cyclical unemployment is not part of the natural unemployment rate. It's caused by the contraction phase of the business cycle. That's when demand for goods and services fall dramatically, forcing businesses to lay off large numbers of workers to cut costs.

Cyclical unemployment tends to create more unemployment. This is because the laid-off workers have less money to buy the goods and services they need, further lowering demand.

$INSHAALLAH it will help you!$

$\mathbb{\huge{A.K.}}$