The following points highlight the five main types of unemployment that occurs in the economy. The types are: 1. Frictional Unemployment 2. Structural Unemployment 3. Cyclical Unemployment 4. Seasonal Unemployment 5. Disguised Unemployment. Type # 1. Frictional Unemployment: It occurs when changing demand patterns in an economy dislocate existing production patterns to the extent that labour becomes redundent. Due to [...]
Here is a list of seven main types of unemployment observed in the present-day world. Type # 1. Frictional: Such unemployment exists in almost every economy all the time. This type of unemployment occurs due to the normal working of the economy. As John Beardshaw has rightly put it, "It is inevitable in a developing economy that people will from [...]
Learn about the relationship between Employment and Unemployment. Two major contemporary problems of macroeconomics are inflation and unemployment. It was the concern with unemployment that gave birth to Keynesian economists in the early 1930s. Keynes was the first economist to introduce the concept of involuntary unemployment. While classical unemployment is real-wage unemployment, Keynesian unemployment is demand-deficient unemployment. According to Keynes, [...]