[go: up one dir, main page]
Scribd
Upload
40 views1 page

Unemployed Discussion

The document discusses different types of unemployment including frictional, structural, seasonal, and cyclical unemployment. Cyclical unemployment occurs when economic growth falls and businesses lay off workers to minimize costs in order to stay profitable.

Uploaded by

Rumaisa Shahzad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
40 views1 page

Unemployed Discussion

The document discusses different types of unemployment including frictional, structural, seasonal, and cyclical unemployment. Cyclical unemployment occurs when economic growth falls and businesses lay off workers to minimize costs in order to stay profitable.

Uploaded by

Rumaisa Shahzad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

An unemployed person is someone who is of productive age, unemployed, able and willing to work, and

actively seeking employment. This includes anyone who is unemployed and is reaching out to contacts
about work opportunities or applying for vacancies. In an economic system, there are four forms of
unemployment:

- Frictional unemployment. Frictional unemployment is caused by transient changes in people's


lives, such as moving to a new place and having to look for a job.

- Structural unemployment. Structural unemployment is caused by a disparity between the


demographic characteristics of employees and the kinds of jobs available, either when
opportunities exist but workers lack the necessary skills, or when there are workers available
but no jobs to occupy.

- Seasonal unemployment. Seasonal unemployment occurs as a result of various industries or


sectors of the labor market being available at different times of the year.

- Cyclical unemployment. Cyclical unemployment is induced by falling demand: when a country's


economic price of goods and services is insufficient, firms are unable to supply jobs.

Cyclical unemployment occurs when an economy's growth in the economy falls, leading
businesses to lay off workers to minimize costs. Companies earn income through the sale of
goods and services, and when profit falls precipitously, firms' profits fall precipitously.
Companies lay off workers to minimize labor costs to keep the firm afloat. The cyclical rate of
unemployment is the aggregate number of individuals who have been laid off as a percentage of
the working population. As a consequence, cyclical unemployment is typically negatively
connected to GDP growth, rising with lower economic growth and falling with higher GDP
growth.

You might also like