Question

What are various categories of unemployment. Define each type of unemployment with a clear example.

Answer 1

Types of unemployment are

1frictionalunemployment-its is due to people changing jobs from one to another or finding a new one

An example can be when a graduate who has just completed his degree looking for a job

2.structural unemployment-this type of unemployment is due to a mismatch between supply and demand for the jobs

For example, suppose due to new technology in the market that can lay off so many workers because they don't know how to operate or handle new machines

3.natural unemployment-it is the sum of frictional and structural .its limit us given by US department data up to 4% which is said to be normal

Cyclical unemployment-this type of unemployment is due to ups and down I business cycles may be due to so many factors

For example, the recession 2008 which causes so many jobs loses