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Chapter 9: Unemployment (Types and causes (Developing countries…

- - - - qualified unemployed workers cannot immediately be matched to the job
      - companies abstain from hiring as they think there is no qualified individuals available, when there actually is
      - therefore, more time spent to search
  - - - declining DD, workers become structurally unemployed if they don't have skills to get jobs in other industries
      - AD falls, may lead to cyclical unemployment
        
        main reason
        
        during recession
      - causes structural unemployment if the fall in AD is permanent
    - - Tech U: happens when new labour saving tech is used, causes fall in D for labour, increase U. OR creates new jobs which many unemployed are incapable of doing
      - movement of certain industries to another location.
      - regional U: when certain regions have full employment and other is unemployed. due to geog immobility of labour.
  - - - traditionally due to trade unions and wages councils bargaining for higher wages
      - or due to minimum wage laws
- - - - welfare loss
- - - - eg JobsCentral, MyCareersFuture
  - - - eg upgrading skills
      - use subs to manage change in econ structure
  - - - reduce structural rigidities eg wage cuts or prov subs for lower cop
  - - - however, might lead to disguised U