Hello Class,
Individuals are said to be unemployed when they are willing and able to work and are actively seeking jobs. The three types of unemployment are Frictional, Structural and Cyclical.
Frictional Unemployment this type is referred to as the “good” type. This is where people in the labor force are looking for jobs or have a job and looking for or to waiting to get a better offer. This would include a graduate from college looking for a job.
Structural Unemployment when the skills become obsolete and due to development and inventions to make way of life better. Though this is the hardest form to be tracked by the government.
Cyclical this is a form of unemployment which is as a result of the fall in business cycle which could be a recession or economic downturn. loss of job due to closures
Amongst the three Frictional can be seen as the desirable compared to the other two as it is the waiting period that allows employers to be able to recruit the skills they want or the people to accept the best possible option for them. This will in turn create a positive impact on the economy in term of increase in demand for goods and services due to increase in income level when people get employed. Structural and Cyclical are as a result of of the business and economic factors that forces people out of employed to unemployment. But structural is needed for the greater good for the way of life and gives room for innovation.
The advent of the internet cannot eliminate frictional unemployment as there will always be a waiting or transition period between college graduates seeking and getting jobs. Also, as individuals desires change there would be a continuous need to seek for higher and better job offers.
Belinda
Rittenberg_Ch4-6.pdf (apus.edu)
(266) (Old Version) Macro 2.3- Unemployment and Natural Rate of Unemployment- AP Macro – YouTube
