Unemployment - Definition

• Unemployment is a condition where people who are capable of working and are actively looking for a job cannot find one.

• It's an important indicator of economic health and is usually expressed as a percentage of the total labor force.

Types Of Unemployment

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

• Seasonal Unemployment

• Long-term Unemployment

Frictional Unemployment

• Short-term unemployment during job transitions.

• Example: A recent graduate looking for their first job.

Structural Unemployment

• Caused by changes in the economy or technology.

• Example: Factory workers losing jobs due to automation.

Cyclical Unemployment

• Linked to the economic cycle. Increases during a recession.

• Example: Workers laid off during a market crash.

Seasonal Unemployment

• Happens when work is only available during certain seasons.

• Example: Agricultural workers during harvest time.

Long-Term Unemployment

• Lasts for an extended period (usually 27 weeks or more).

• Often leads to skill deterioration.