Answer to Question #199118 in Economics for Andrea Leah Dhanra

Question

What are causes of unemployment

Answer 1

There are three main reasons for unemployment:

job loss (dismissal);

voluntary leaving work;

first appearance on the labor market.

There are three types of unemployment: frictional, structural and cyclical.

 

Frictional unemployment (from the word "friction" - friction) is associated with the search for work. Obviously, finding a job takes time and effort, so a person who is waiting or looking for a job is unemployed for some time. A feature of frictional unemployment is that ready-made specialists with a certain level of professional training and qualifications are looking for work. Therefore, the main reason for this type of unemployment is the imperfection of information (information about the availability of jobs). A person who loses his job today usually cannot find another job tomorrow.

The frictional unemployed include:

dismissed from work by order of the administration;

resigned of their own free will;

awaiting recovery at their previous job;

those who have found a job but have not yet started it;

seasonal workers (out of season);

people who first appeared on the labor market and have the required level of professional training and qualifications in the economy.