In this revision note we look at structural, cyclical, frictional, technological and seasonal unemployment.
Frictional unemployment is transitional unemployment due to people moving between jobs e.g. new entrants to the labour market. There are always hundreds of thousands of job vacancies in modern economies such as the UK, so a degree of frictional unemployment is both unavoidable and (to an extent) desirable so that jab vacancies can be filled.
Structural unemployment happens when there is a long-term decline in demand in an industry leading to fewer jobs as demand for labour falls away.
Examples might include:
Structural unemployment exists where there is a mismatch between their skills and the requirements of the new job opportunities. This problem is due to occupational and geographical immobility of labour and requires investment to improve skills, give the unemployed suitable and effective training and work experience and make them able to move location if needed to take a new job.
Find more statistics at Statista
Have you seen the tutor2u YouTube channel? Subscribe now and never miss a revision video!
Add these revision guides and worked answers to your essential revision resources for AS & A2 Economics exams this summer. Our revision guides are brand new and bring your tired old...