TYPE OF UNEMPLOYMENT
There are four type of unemployment that are:
This type of unemployment is temporary. There are three main groups that belong in this type of unemployment. i.
People who look for a job for the first time such as fresh graduate and school leaver. ii.
Re-entrants or people who quit their job to rest but want to work again. For example, a house wife who quit her job to raise her children and rejoin the labour force again when the children are all grown up. iii.
People who are temporarily between jobs. For example, people who been fired or voluntarily quit and are looking for another job. 2.
This type of unemployment occurs when there is a lack of jobs that result because of a downswing in a business cycle or a short term cyclical fluctuations in the economy. When the economy fall into a recession, the aggregate demand for goods and services will decrease and some companies will close down or retrench some workers. Cyclical unemployment is more serious compared to fractional unemployment as it is involuntary and continues until the economy come out of the recession which take several years to recover. 3.
Structural unemployment arises due to structural change in the economy. A worker loses a job because that job is no longer in part of the structure of the economy or the worker lack the necessary skills for jobs that are available or have particular skills that are no longer in demand. For examples, a machine operator who loses his job could still be unemployed even though there are job vacancies for computer programmers and a telegraph operator who loses his job because of the used of telephone and internet. 4.
Seasonal unemployment can be predicted to recur periodically, according to the time of the year. It usually affected workers in agriculture, tourism-related occupations, education, and some other industries. For examples, a fisherman...
Please join StudyMode to read the full document