Eco - Explain Unemployment

Unemployment is defined as to exist that peoples who are willing to do work at the going wages can't find jobs.

The 3 main categories of unemployment are

1. Structural unemployment: This kind of unemployment happens when the demand for a special type of worker is not available. This happens due to the difference between the skills an employer is taking for, and the skills workers actually have.

2. Frictional unemployment: This kind of unemployment arises when workers left their job and search for another one. The time gap between this mentioned as frictional unemployment. Example – quitting or termination.

3. Cyclical unemployment: This kind of unemployment appears when there is a regress and many people lose their posts. When the economy goes up and down, based on these cycles, people became unemployed. That is why this is called cyclical unemployment.