UNEMPLOYMENT
Unemployment is defined as the absence of gainful employment for persons who have the desire and ability to work. It indicates the state of the labor market in a particular region or country and is an important economic indicator.
Types of unemployment and causes
- Frictional Unemployment occurs when individuals are in the process of transitioning between jobs.
- Structural Unemployment happens with changes in the structure of an industry, such as the decline of certain occupations or industries due to technological advancements or shifts in consumer preferences.
- Cyclical Unemployment is associated with economic cycles, where downturns in the business cycle result in layoffs and unemployment.
- Seasonal Unemployment happens when certain industries, such as agriculture or tourism, experience fluctuations in demand during different seasons, leading to temporary unemployment during off-seasons.