Question

Describe the three forms of unemployment

Describe the three forms of unemployment

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Answer #1

1. Cyclical unemployment : this is due the changes in the economic cycles, decreasing the demand of good and services. This leads to lay offs as it becomes costly for firms.

2. Frictional unemployment : is when an. Individual is in a transitional period such as changing jobs or just graduated out of college.

3. Structural unemployment : this is due the the changing skillset requirements. Like changes in technology puts emphasis on higher sill set , which makes many individuals are not upto the demand.

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