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Critically examine the different types of unemployment by cause.
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1. Critically examine the different types of unemployment by cause. Unemployment occurs when people are looking for a job and cannot find one. There are different types of unemployment reflecting different causes and potentially requiring different government policies. There are four main types of unemployment. They are structural unemployment, fictional unemployment, cyclical unemployment and seasonal unemployment. First of all, we have structural unemployment. Structural unemployment occurs when there is a mismatch between the skills and location of the job vacancies and the skills possessed by the unemployed people as well as the location in which they reside or work. Normally, it rises as a result of a change in economic structure. For example, the economy had changed from secondary production to tertiary production. If the people caught in this change in demand cannot adjust or adapt themselves to the new labour market environment, they will become unemployed. Technological progress...
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