So I've noticed that my blog is random...I dont like talking about the same thing all the time..So this evening I'll teach a lesson about types of unemployment...because I'm taking a business class and I think think info could be useful for someone around here!
Sources of Unemployment
Frictional unemployment describes the time required to bring together employers and job seekers. Frictional unemployment usually doesn’t last long and results in a better match between workers and jobs, so the entire economy becomes more efficient.
Seasonal unemployment is caused by seasonal changes in the demand for certain kinds of labor. During winter, there is little demand for farm hands, lifeguards and construction workers. The Christmas season increases the demand for sales clerks, postal workers, etc.
Structural unemployment arises from a mismatch of skills or geographic location. That is, the skills required are not matched by those employed and those with the skills needed live too far away. Structural unemployment occurs because changes in tastes, technology, taxes, and competition reduce the demand for certain skills and increase the demand for other skills. Many jobs are being replaced by technology. Most structural unemployment is short-term and voluntary, but poses more of a problem because workers must develop the skills demanded in the local job market to look elsewhere.
Cyclical unemployment fluctuates with the business cycle, increasing during contractions and decreasing during expansions. Cyclical unemployment means the economy is working inside its PPF.
Government policies that stimulate aggregate demand during recessions aim to reduce cyclical unemployment.
