Question

Explain the difference between each of the three types of unemployment. Use real world examples (not from the book) that illustrate each type. ( In your own words)

Answer 1

Ans:

The three types of unemployment are cyclical unemployment , frictional unemployment , and structural unemployment .

Table showing types of unemployment and examples,

Type of unemployment	examples
Cyclical unemployment is the unemployment caused due to cyclical changes in the economy.	During a recession,if people are willing to work but could not find work such type of unemployment is called cyclical unemployment.
Frictional unemployment occurs when workers change jobs and new workers take time to find jobs.	when John graduates from college and begins look for work, frictional unemployment occurs.
Structual unemployment is the mismatch between the skills employers want and the skills workers have.	if workers can not manage the new machines and technology in the industry, it is case of structural unemployment.