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Types of Unemployment

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.

Look Into Cyclical Unemployment

Look Into Cyclical Unemployment

Cyclical unemployment statistics are a specific type of unemployment statistics which indicates that a specific type of unemployment has occurred because there is not enough aggregate demand for jobs or goods in the economy. Cyclical unemployment obtains its name because it varies with the business cycles changes. These unemployment statistics can be persistent, which was one of the contributing factors to the development of the worst international unemployment statistics in history, the Great Depression. 
The development of cyclical unemployment develops during the recession portion of a regular business cycle happens and wages do not fall to meet the equilibrium level. A certain level of cyclical unemployment is good for the economy, since it can cause greater complication for a more limited number of jobs. However, if the cyclical unemployment statistics indicate that the fluctuations happen to rapidly, it can have a drastic impact on unemployment statistics. 
Cyclical unemployment is also known as Keynesian unemployment, since it is one of the defining issues which Keynesian economists seek to address. Keynesian economic policy states that the best way to address imbalances of cyclical unemployment is to increase government deficit spending or adopt expansionary monetary policy in order to address industrial capacity which is not being used to its full potential, resulting in unemployed capital goods. 
Cyclical unemployment statistics are exacerbated by the fact that even if all job opening were to be filled, there would still be unemployed individuals. 
Cyclical unemployment is not recognized by economists who adhere to the theories of classical economics.

What Are The Types of Unemployment

What Are The Types of Unemployment

Frictional Unemployment
Frictional unemployment is the type of unemployment that exists when an individual is not happy with the job they have, and begins to look for additional work. A person who is in the position of being ‘in between jobs’ can be a beneficial type of unemployment since frictional unemployment can cause individuals to find jobs that better suit their skills and which will result in greater satisfaction for themselves and better production for the company. 
Youth Unemployment
Youth unemployment accounts for the number of unemployed workers between the ages of sixteen and twenty four. Obtaining accurate numbers for youth unemployment and the volume of unemployed workers is complicated by the fact that individuals who are in school are usually not counted against youth unemployment figure. Youth unemployed workers usually drop to their lowest levels in July, as “summer jobs” are filled. 

Seasonal Unemployment
Seasonal unemployment is often excluded from general unemployment figures because unemployment figures exclude seasonal jobs, such as school bus drivers during the summer, migrant farm workers outside of planting or harvesting seasons, or construction workers when construction jobs are postponed for weather related reasons. 

Cyclical Unemployment
Cyclical unemployment statistics are also known as Keynesian unemployment statistics. Cyclical unemployment is not recognized by classical economic theory. The unemployment statistics that result from cyclical unemployment is exacerbated by the fact that even if new positions were to be created, there would still be many individuals who remained out of work.