Types of unemployment
- Created by: robihann.08
- Created on: 23-09-14 12:16
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- Unemployement
- Real wage
- -Brought about by substantial and frequent wage rises
- Demand deficient (cyclical)
- -Relates to business cycle and how AD fluctuates -When there is a slowdown in the economy, AD begins to fall. This leads to firms cutting back on production, therefore reducing the labour force
- Frictional
- The time searching between one job for another
- Structural
- Long term decline in a particular industry e.g. coal. Workers then have problems with geographic and skills immobilty
- Hidden
- People missed from LFS. They may be long term unemployed so may have become discouraged to find work; excluding them from the definition
- Voluntary
- People who choose to not work at the current market wage- often as benefits are too widely avaliable
- Real wage
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