Question

What type of employent is an employment which exists in any economy due to people being in the process of moving from one job to another ?

Answer 1

There are three main types of unemployment: structural, frictional, and cyclical. The first two make up the natural unemployment 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.

This article summarizes the nine types of unemployment, including explanations of the terms 'real unemployment' and 'underemployment.' Links to more detailed articles are included in case you would like to know more. In addition, find out how unemployment is measured and why some experts say it doesn't capture the real unemployment rate, and learn how U.S. unemployment has ​fluctuated over time.

There will always be some level of unemployment, even in a healthy economy.

The lowest level of unemployment was 2.5 percent, right after the Korean War. This was an economic bubble that soon led to a recession. The natural unemployment rate of 4.5 to 5 percent is a healthier indicator.

Natural unemployment consists of two of the three main types of unemployment: frictional and structural.


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