Frictional Unemployment: Occurs as workers change jobs and spend time without jobs during this
Seasonal Unemployment: Occurs when consumer demand for certain goods and services are seasonal, and as a result people are only employed during periods of time.
Cyclical Unemployment: Occurs when there is too little demand for goods and services in the
economy during a recession, and firms are producing less as a result,
employing less labour as a result.
Structural Unemployment: Occurs when the labour market is unavailable to provide jobs for all
workers because of a mismatch between the worker’s skills and the
skill requirement of the jobs. It arises from long-term changes in the
structure of the economy, as entire industries close down due to lack of
demand for goods and services they produce. Workers who become
unemployed and have skills no longer needed are occupationally
Voluntary Unemployment: Voluntary unemployment includes workers who reject low wage jobs
whereas involuntary unemployment includes workers fired due to an
economic crisis, industrial decline, company bankruptcy, or