Types+Of+Unemployment


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Frictional unemployment is when a person is out of one job searching for another. It generally needs some time before a person can get the next job. During this time he-her is frictionally unemployed. The time period of getting from a job to another is very short. The more developed an economy is, higher is the probability of getting a job faster and lower is the probability of frictional unemployment. Structural Unemployment ** Structural unemployment is when a person doesnt have enough qualification to fulfill all his-her responsabilities of his-her job. Structural unemployment is caused when a person wants more than his-her normal salary but the company where he-she is employed cant pay it. Real Wage or Classical Unemployment ** Classical unemployment is when to a person they pay them a high salary so to others they pay them a low salarie for doing the same job as the person that pay a high salary. Cyclical or demand deficient unemployment occurs when the economy is in need of low workforce. According to the Keynesian economists this type of unemployment occurs due to economic disequilibrium. This form of unemployment is most commonly known as cyclical unemployment since unemployment moves with the trade cycle. The demand for labor increases with the economy in the boom phase. Again, when the economy passes though recession, demand for labor contracts and the surplus is released as the unemployed labor force. There are certain kinds of unemployment that tend to concentrate in a particular time of the year and are known as seasonal unemployment. Seasonal unemployment is most common in industries like tourism, hotel, catering and fruit picking.
 * Frictional Unemployment **
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 * Cyclical Unemployment **
 * Seasonal Unemployment **

Hence from the above types of unemployment we may conclude that as long as demand supply gap persists in the labor market, unemployment will exist. The pace of economic growth is also a factor contributing to the different types of unemployment. []