Unemployment Task
Research:
1. Outline the following types of unemployment: cyclical, frictional, seasonal,
underemployment, structural
Cyclical unemployment occurs with changes in economic activity over the business cycle,
during economic downturns. Frictional unemployment is considered short-term, occurring
as individuals search for new jobs, switch careers, or enter the labour market for the first
time. Seasonal unemployment is linked to certain industries or occupations, where workers
may be employed during peak seasons but face temporary unemployment during off-peak
periods. Underemployment occurs when workers are employed but work fewer hours than
they desire or have underutilized skills. Structural unemployment arises from long-term
changes in the structure of the economy, such as technological advancements, globalization,
or shifts in consumer preferences.
2. Explain the impacts of unemployment on the individual and economy
There are a variety of impacts of unemployment on the individual including financial
hardship, physiological and emotional effects, reduced standards of living, and negative
health outcomes. Impacts on the economy include reduced consumer spending, decreased
tax revenue, increased government expenditure, lost productivity, social and political
consequences.