Types of Unemployment: Frictional, Structural, Cyclical, and Seasonal

The video explains how unemployment is linked to personal and national issues, and how it serves as an economic indicator. It covers the calculation of the unemployment rate and the four types of unemployment: frictional, structural, cyclical, and seasonal. The concept of full employment and the issues of underemployment and discouraged workers are also discussed, highlighting the complexities of measuring unemployment accurately.

Why is tracking unemployment important for economists?

• It helps in determining the population size.

• It is used to measure the overall health of an economy.

• It predicts future technological advancements.

• It helps in calculating the national debt.

Which group is NOT included in the labor force?

• Full-time students

• Self-employed individuals

• Unemployed individuals actively seeking work

• Part-time workers

What type of unemployment occurs when someone is looking for their first job or switching jobs?

• Cyclical unemployment

• Seasonal unemployment

• Structural unemployment

• Frictional unemployment

What is an example of structural unemployment?

• A factory worker laid off during a recession

• A cashier losing their job due to automation

• A student looking for a job after graduation

• A teacher taking a summer break

What causes cyclical unemployment?

• Technological advancements

• Seasonal changes in demand

• Mismatch of skills

• Economic recessions

Which of the following is an example of seasonal unemployment?

• A software developer losing their job due to outsourcing

• A ski instructor being unemployed during summer

• A factory worker laid off during a recession

• A recent graduate looking for their first job

What does 'full employment' mean in economic terms?

• Zero unemployment

• No part-time workers

• An unemployment rate between 4 and 6%

• All jobs are high-skilled