Types of unemployment


Typesof unemployment

Typesof Unemployment

Thethree types of unemployment are structural, frictional and cyclical.A structural type of unemployment occurs when workers approach thewrong areas of work for employment. This may be due to personaldesires or the lack of skills needed such as technological for one toget an employment opportunity (Tucker, 2013). As a result, businesseslack skilled and efficient workers who are right to perform certaintasks or functions.

Onthe other hand frictional employment occurs most frequently inbusinesses as a result of employee transitions, which are normallytemporary in nature (Tucker, 2013). Among the primary reasons thatthis temporary transition happen is incomplete or inconsistentinformation from both the employers as well as the employees. As aresult, many businesses suffer the loss of having employees probablyas a result of skills or wages.

Cynicaltype of unemployment normally occurs due to negative economic forcesor contractions (Tucker, 2008). For instance, recessions or economicdepression, the economy faces higher levels of unemployment due tounavailability of employment opportunities. However, during a stateof economic growth the economy creates job opportunities which inturn increase the levels of employment. Therefore it is important tonote that during economic recession, there are higher numbers ofunemployed workers. For this reason, most businesses reduce theamount or levels of wages due to increased job demand.

Amongthese three types of unemployment, structural employment is the onlydesirable employment (Carson &amp Thomas, 2015). This is becauseduring the transitions, workers normally take minimum type periodbefore getting the right employment. For instance, a college studentworking in a small restaurant in town but opts to quit aftergraduation, is more likely to take less period of time beforeacquiring the right job.


Carson,B. R, &amp Thomas, L.W. (2015). TheAmerican Economy: A Student’s Study Guide.New York. Wiley Publishing.

Tucker,B.I. (2013). Macro-Economicsfor Today.New York. Routeledge Publishing

Tucker,I. (2008). Surveyof Economics.New York. Routeledge Publishing