Demand for goods and therefore workers fluctuates at different times of the year eg Ski teachers
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What is the cause of Frictional unemploym,ent
Workers are unemployed because they are between jobs or have first entered the job market
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What is the cause of Structural unemployment?
Long term decline in an industry eg mining or a mismatch between existing skills and skills needed in growing industries
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What is the solution to Cyclical unemployment?
Expansionary monetary policy or expansionary fiscal policy to increase AD
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What is the solution to Seasonal unemploymet?
Supply-side policies eg improving information about vacancies and improving transferable skills so workers can find temporary employment when their contrcts end
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What is the solution to Frictional uneployment?
Supply-side policies - eg imporoving inof about vacancies and improving incentives to find work eg decreasing unemployment benefits
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What is the solution to Structural unemployment?
Supply side policies - eg Improving skills through training and education, encouraging investment in growth industries and helping people move from one region to another
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Other cards in this set
Card 2
Front
What is the cause of Seasonal unemployment?
Back
Demand for goods and therefore workers fluctuates at different times of the year eg Ski teachers
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