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Chapter 9: Unemployment - Coggle Diagram

- - - - Real wages forced above the market-clearing level (excess of labour supply above labour demand).
    - - Annual weather cycle
      - Traditions/Customs
    - - Deficiency of (effective) demand, especially during an economic recession.
    - - Structural
        
        Demand
        
        Change in consumer preferences
        
        Competition from other industries
        
        Supply
        
        Technological advancements
        
        Relocation of certain industries
        
        Geographical immobility of factors
      - Frictional
        
        Imperfect information results in a time lag which delays the process in which qualified (unemployed) workers can be matched with current job openings.
        
        Caused by workers leaving their jobs (voluntary/termination/new/obsolete).
- - - - Poverty
      - Physical/mental health
  - - - Frictional: Poor transport and communication systems + poor government planning/co-ordination.
      - Seasonal: Pre-dominance of agriculture within economy.
      - (Imported) Cyclical: Reliance on developed countries as principal exports markets.
      - Demand-deficient: Generally low level of demand & output.
    - - Structural: Competition from newly-industrialised countries or emerging economies.
      - Cyclical/demand-deficient: Reliance on external demand as a result of greater integration with global economy.
      - Technological
  - - - Re-training/planning (through incentives, such a grants/subsidies)
    - - Establishment of labour exchanges
    - - Demand/supply management
    - - Work-sharing/rearrangement of production
    - - Restrictive policies on trade unions & minimum wage