Answer to Question #80677 in Macroeconomics for gerald

Question

Discuss with examples, ANY FIVE (5) types of unemployment that exist in your country.

Answer 1

There are many types of unemployment that exist depending on the triggering situation. The following section will discuss just five of those types in brief. Frist, voluntary unemployment is a type in which a person decides to remain unemployed because of the fact that he is not willing to work at the market wage rate. Seasonal unemployment, as the name suggests, is one where employment is available during certain durations within the year. For instance, people working in the agricultural sector will be unemployed during the ripening of harvests but remain employed during planting and harvesting. The third type is technological unemployment, where individuals become unemployed due to technological inventions and innovations, making them obsolete. Technology replaces them in their place of work, and they have to leave since there is no more work they can handle. Chronic unemployment is one that exists in most underdeveloped countries or regions. In this type, the inadequate or lack of developed resources, coupled with their underutilization among other factors such as high population growth, leads to the unemployment of many people. Lastly, frictional unemployment is the type that occurs mostly during transitional periods especially when changing jobs. Therefore, one has to wait until he finds a suitable job that can accommodate him.