Frictional Unemployment
Frictional unemployment occurs
when workers leave their current jobs and are seeking for new ones. Most of the
workers voluntarily quit their current jobs in order to grow up and find better
jobs where they can be more productive. It is surely benefit for a worker, if
he takes time to search a job that matches his skills, experiences, and talent.
This type of unemployment also caused by lack of necessary skills for a
particular job, shortage of raw material, breakdown of plant etc. It may also
be caused by moving of an employee to a new location. For example, a mechanic
moves to a new city and he becomes busy to get settled into a new job.
Structural Unemployment
Workers who possess skills of
outdated technologies are generally unemployed. Structural unemployment occurs
when workers have no relevant skills which are required for the available jobs
in the market. This could be the result of ever changing technologies. For
example, marketing professionals who specialize in traditional marketing may realize themselves obsolete or
less demanded if they are not aware of digital marketing. This kind of unemployment also caused by
taking works from robots rather than human workers. Learning advance
technologies is a good way to obtain market demanded jobs.
Seasonal Unemployment
There some goods and services
that demand fluctuates seasonally which give rise to seasonal unemployment. In
this situation the skills of the labors are not need for some part of the year.
For instance, ice cream and cold drinks factories are fully staff by workers
during summer but in winter most of the workers are laid off. This kind of
unemployment is generally observed in agriculture sector. Workers are remained unemployed when there is
no harvesting time in agriculture sector. Workers face the problem of seasonal
unemployment when they work with those companies that produce seasonal
products.
Cyclical Unemployment
This kind of unemployment is a
common feature of underdeveloped countries. It relates to the contraction phase
of business cycle. In the period of recession, the demand for goods and
services goes down which force businesses to lay off workers. They do so
because if the demand falls, they will produce less production, and if they
produce less production, they will need few workers. However, cyclical
unemployment is temporary situation, once the recession is overcome, the
workers get a chance to go back to their works in the same field.
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