Home Types of Unemployment

Types of Unemployment

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.

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.”