E.43: Understanding Types of Unemployment

What causes structural unemployment?

• Mismatch between workforce skills and job requirements

• Fluctuations in the business cycle

• Seasonal demand variations

• Temporary job transitions

What is frictional unemployment?

• Unemployment caused by industry shifts

• Temporary unemployment during job search

• Unemployment due to economic recessions

• Unemployment due to lack of demand in certain seasons

Which industry is likely to experience seasonal unemployment?

• Agriculture

• Manufacturing

• Technology

• Finance

What characterizes underemployment?

• Working in a different season

• Unemployment during economic downturns

• Being unemployed due to technological change

• Working part-time or below skill level

What is cyclical unemployment directly related to?

• Business cycle fluctuations

• Mismatch of skills

• Seasonal industry demands

• Job searching

Which type of unemployment can be considered natural in a dynamic economy?

• Structural

• Frictional

• Cyclical

• Seasonal