3.2 Types of unemployment
Frictional unemployment, which is the least severe of the three types, occurs as a result of individuals' movements between jobs. Structural unemployment, which is the most severe of the three types, typically requires workers to seek retraining or additional education as a consequence of structural changes in the economy. Cyclical unemployment is the result of downturns in the business cycle, economic contractions, or recessions.
Activity
Principles of Macroeconomics: "Chapter 5, Section 3: Unemployment"
- Read this section and attempt the "Try It" exercises. This reading serves as an introduction to unemployment and provides a foundation for deeper study later in this course. This reading also covers the three types of unemployment: frictional unemployment, structural unemployment, and cyclical unemployment.
Saylor Academy: "Unemployment: Types, Kinds and Quantities"
- As you saw in the previous reading, unemployment can be measured in many ways. This reading will provide a few additional measures of unemployment that were not discussed in the textbook. The United States uses six measures of unemployment. The table and numbers in this resource come from the Bureau of Labor Statistics, the federal agency that monitors and reports on unemployment.
