Unemployment is understood as a socio-economic situation when a part of the able-bodied population is not involved in the production of goods and services. There are five types of unemployment in total.
Instruction manual
1
Frictional unemployment is caused by the natural time costs of finding a job. It lasts from one to three months, takes place as a phenomenon due to the dynamics of the labor market. Frictional unemployment affects both newcomers to the labor market and people who have left their previous jobs.
2
Structural unemployment is caused by technological changes in production. At the same time, the sectoral or territorial structure of labor demand is changing. For example, there was a drop in demand for workers in a particular profession.
3
Specialists in the area that has lost demand cannot retrain so quickly as to immediately find another job. They cannot move to another place where the demand for their specialty is higher. People have a desire to work, but they cannot get a job.
4
The first two types of unemployment exist constantly, because the market economy is characterized by fluctuations in supply and demand. People will seek better jobs, and firms will seek better employees. Many economists do not distinguish between frictional and structural unemployment.
5
The combination of frictional and structural unemployment in the economy is called natural unemployment. If the country has only natural unemployment, they speak of full employment. Full employment implies that unemployment is minimal.
6
Seasonal unemployment is caused by seasonal fluctuations in the output of specific industries. If the company is characterized by seasonal demand, it is more likely to lay off workers before the next season. People agree to such work if the wages are high enough and there is confidence in further employment.
7
Cyclical unemployment occurs during a recession and lack of demand. Cyclical unemployment is characterized by: a fall in aggregate demand for manufactured products and labor, and the inflexibility of wages.
eight
Institutional unemployment indicates the ineffective functioning of the labor market. there is limited information on vacancies. People do not know about the availability of certain opportunities, and companies do not know about a person’s desire to take the proposed position. The size of unemployment benefits also plays a role.
9
With a fairly high level of benefits, many people fall into a kind of trap. They would rather receive benefits than go to low-paying jobs. This is a problem in many countries with high unemployment benefits.
