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2.1.3 Causes of Unemployment (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 14 Sept 2023

This editable and downloadable powerpoint covers many of the main causes of unemployment.

Here are the most common causes of unemployment:

  • Cyclical unemployment: This is when the unemployment rate rises during an economic downturn and falls during a recovery. It's caused by fluctuations in the business cycle.
  • Structural unemployment: This is caused by changes in the economy, like the decline of certain industries or the rise of automation. It happens when there's a mismatch between the skills of workers and the needs of employers.
  • Frictional unemployment: This is short-term unemployment caused by people transitioning between jobs, moving to a new location, or re-entering the workforce after a break.

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