Types of Unemployment Flashcard

Front

What is the main cause of frictional unemployment?

Back

In between jobs or searching for new employment opportunities

Front

How does structural unemployment differ from frictional unemployment?

Back

Structural unemployment is caused by a mismatch between the skills of the workforce and the requirements of the job market, while frictional unemployment is caused by temporary transitions or search for new jobs.

Front

What are some examples of industries affected by structural unemployment?

Back

Manufacturing, agriculture, and mining

Front

What is the primary cause of cyclical unemployment?

Back

Fluctuations in the business cycle

Front

How does seasonal unemployment differ from frictional unemployment?

Back

Seasonal unemployment is caused by changes in the seasons or weather, while frictional unemployment is caused by people transitioning between jobs.

Front

What are some examples of seasonal unemployment?

Back

Agricultural workers, lifeguards, ski resort workers

Front

What are the effects of cyclical unemployment on the economy?

Back

Cyclical unemployment leads to decreased consumer spending, lower tax revenues, and a decrease in overall economic output.

Front

How does seasonal unemployment impact specific industries?

Back

It can cause a decrease in demand for their products or services, leading to layoffs or reduced hours for workers.

Front

What are some strategies to reduce frictional unemployment?

Back

Improving job search methods, providing training and education programs, and creating better information systems for job seekers and employers

Front

What are the long-term effects of structural unemployment on a country's economy?

Back

Decrease in overall productivity and economic growth, increased income inequality and social unrest