Equilibrium Unemployment: Theoretically, there are times when the market is at equilibrium but there might sill be unemployed people. This is due to the fact that people are either unable to work or are just not looking to work at a given time.
Frictional Unemployment:
- The time period between jobs when a worker is searching for or charging jobs.
- This is short term and not expected to last a long span of time
- It is also referred to as natural unemployment
- Anyone who is between jobs- graduated students people died, laid off
- If the people seriously pursue a job and have skills, then they have a good change.
- People can find stable jobs or find jobs quickly when they are out of work
- To encourage the workforce to find a job earlier the government can make the benefits of not having a job harsher
Structural Unemployment
- The worst type of unemployment and is a result of the changing structure of an economy.
- At a given wage the quantity of labour supplied exceeds the quantity of labour demanded.
- Anyone who is in a shrinking sector, factory workers replaced by automation
- There are two causes of this unemployment:
- When new technologies become available the demand for some jobs become uneccesary
- Demand for a certain job might fall due to falling labor costs in foreign countries
- The outlook is not very good. Improvements will take a long time unless workers have other skills to get another job.
- Broadening skillsets can reduce effects.
- The times change, and society needs different types of jobs now
- Solutions:
- Long term solution could be educating the workforce to become more adaptable to the changing world
- Improve occupational mobility
- Government provides subsidies to firms that provide training for new jobs
Seasonal Unemployment
- Natural to occur in an economy
- Main reason in occurs is due to a change in temperature/climate during different seasons
- When Industries grow or shut down for a season or make seasonal shifts in their production schedules.
- Ex. Ski patrol, landscaping maintanence, life guard
- Good chance because there are seasonal jobs open for every season
- Have a secondary job that isn't affected by a season