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Types of Unemployment

Frictional Unemployment Explained

Frictional Unemployment Explained

Frictional unemployment is the technical term used to refer to individuals who describe themselves as “in between jobs.” Frictional unemployment develops among individuals who are in the middle of a transitional period between jobs or who are searching for a new job. Frictional unemployment may also be known as search unemployment, can be completely voluntary, and is completely compatible with full employment.
The most common individuals who experience frictional unemployment are graduating students or individuals, such as former homemakers, who are re-entering the job market. 
Frictional unemployment exists because individuals may be mismatched with jobs for a variety of factors, which can vary include skills, payment levels, work hours, the location of either the job or the worker, the attitude of the worker or the office, dissatisfaction, or many other factors. 
Although there is an inherent level of dissatisfaction on the part of both employers and workers, which is beneficial since it means both parties will continue to search for more efficient solutions, high turnover can be detrimental to a businesses, and severe dissatisfaction can cause a decrease in employee productivity if there is insufficient job satisfaction on the part of the employee. 
In order to minimize the impact of frictional unemployment upon the society as a whole, governmental policies may be instituted to minimize the amount of time that the frictionally unemployed remain “in between jobs.”

Youth Unemployment Explained

Youth Unemployment ExplainedTraditionally youth unemployment is at its lowest levels in the month of July. The reason there are traditionally the least unemployed workers in the youth unemployment market. Youth unemployment is classified as individuals between the ages of 16 and 24. Youth unemployment levels are affected by the large numbers of high school and college students who enter the job market between April and July of each year and take summer jobs during this time. 

The percentage of the youth population that is looking for jobs each year varies greatly in year over year comparisons; the highest percentage of the youth labor force that was looking for work was found in 1989, a peak of 77.5 percent. 

Youth unemployment and employment figures only account for the non-institutionalized members of this segment of the population as unemployed workers. 

In a year over year comparison of July 2010 youth unemployment figures to July 2009 youth unemployment figures, the number of unemployed workers rose slightly, to the highest youth unemployment figures on record since data has been accurately complies, since 1948. 

One complication in accurately determining the levels of youth unemployment that is not present when examining the volume of unemployed workers in other age brackets is the fact that individuals who are attending school are not included in the youth unemployment numbers.

Understanding Seasonal Unemployment

Understanding Seasonal UnemploymentSeasonal unemployment is a specific sub set of unemployment that develops when a particular labor market is unable to match the supply for jobs with the corresponding demand. Seasonal unemployment is closely related to both structural and frictional unemployment. Whereas frictional unemployment is temporary, and structural unemployment is of a longer duration, seasonal unemployment is different in that it affects segments of a population for a specific, regularly recurring period of time each year. 

Common examples of seasonal unemployment include the fact that school bus drivers may experience unemployment when school is out of session, even if they have a promise of continued or renewed employment when the school year begins again the following year. Seasonal unemployment can also include construction workers who can have difficulty finding construction jobs or projects when the weather turns colder. Migrant farm work may cause individuals to be out of work for a specific period of time, even if there is an expectation that the workers will be able to find work if they move to work at another place that will need their work skills. 

Seasonal unemployment figures do not account for individuals who have taken seasonal jobs in order to obtain any income even if they prefer jobs that are permanent or full time. 

Most unemployment figures account for predictable unemployment by excluding seasonal jobs that typically experience cyclical levels of employment. An unemployment measure that accounts for these seasonal unemployment figures is said to have used “seasonal adjustment techniques.