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  • Unemployment
    • Structural
      • Decline of manufacturing
      • Occupational immobility
      • Geographical immobility
      • Technological innovation
      • Foreign competition - rising exports
      • Long term regional decline
      • Disincentives e.g poverty gap
      • Outsourcing of production overseas
    • Frictional
      • Unaffordable housing
      • Skills gaps - Cost of re-training
      • Disincentives created by the poverty trap
      • Risk of employer discrimination
      • Erosion of skills and motivation from long term unemployment
      • Disincentives created by the unemployment trap
    • Technological
      • Innovation of productivity enhancing technology
      • Cheaper unit cost of labour by using technology rather than employing workers
    • Cyclical
      • 1. Demand - deficient unemployment
      • 2. Fall in demand causes a fall in production
      • 3. Fall in production leads to a fall in the demand for labour
      • 4. Fall in the demand for labour causes unemployment
        • Firms make redundancies
        • Firms cut back on recruitment of new workers


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