Unemployment

The video tutorial explains the three types of unemployment: frictional, structural, and cyclical. Frictional unemployment occurs when individuals are between jobs but possess the right skills. Structural unemployment arises when skills become obsolete, often due to technological advancements. Cyclical unemployment is linked to economic recessions, where decreased consumer spending leads to job losses. Understanding these types is crucial for the AP test.

Which type of unemployment occurs when someone is actively searching for a new job after leaving their previous one?

• Frictional unemployment

• Cyclical unemployment

• Structural unemployment

• Seasonal unemployment

What is a key characteristic of structural unemployment?

• It is caused by seasonal changes.

• It involves having outdated or irrelevant skills.

• It occurs during economic booms.

• It is a temporary phase between jobs.

Which of the following is an example of structural unemployment?

• A teacher on summer break

• A worker laid off during a recession

• A blacksmith in the modern era

• A student looking for their first job

What typically causes cyclical unemployment?

• Job transitions

• Economic recessions

• Seasonal work patterns

• Technological advancements

During a recession, why might businesses reduce their workforce?

• To upgrade employee skills

• Due to increased consumer spending

• To expand their operations

• Because of decreased demand for products