Unemployment | Topics | tutor2u Economics

When someone is of working age, and is willing and able to work, but cannot find a job. There are various types / causes of unemployment:

Classical (caused by intervention in the labour market that raises the wage above the market equilibrium e.g. National Minimum Wage or Trade Union activity)
Cyclical / Demand-deficient / Keynesian (caused by weak aggregate demand, reducing the demand for labour)
Frictional (caused by workers seeking a better job; workers in-between jobs)
Involuntary (a situation where a worker is willing to work at the going wage rate but cannot find a job)
Regional (caused by geographical immobility, or perhaps because local industries no longer operate)
Seasonal (workers without jobs due to the time of year e.g. fruit pickers in the Winter)
Structural (caused by lack of skills for the jobs available; a result of deindustrialisation or other structural changes in an economy)
Voluntary (caused by workers being unwilling to accept a job at the going wage rate)


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