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UNEMPLOYMENT :silhouettes: - Coggle Diagram
UNEMPLOYMENT
:silhouettes:
DEFINITION
A situation where labour force participants are available and willing to work but unable to finds job.
Types of Unemployment
Cyclical Unemployment :fire:
:pen: Occurs when there is a lack of jobs because of a downswing in a business cycle or a recession.
Structural Unemployment :fire:
:pen: Arises due to structural changes in the techniques of production.
Frictional Unemployment :fire:
:pen: Occurs when people are in between jobs, entering or re-entering the labour force
Seasonal Unemployment :fire:
:pen: Arises due to seasonal variation in the activities of particular industries.
Effects of unemployment
Economy
:check: High unemployment rates will affect the economy.
:check: Potential GNP is determined by the level of output with full employment.
:check: The higher the unemployment rates, the greater the GNP gap.
Individuals and Society
:red_cross: Loss of income and self-respect
:red_cross: Loss of job skills
:red_cross: Social and political problems