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Unemployment - Coggle Diagram
Unemployment
Causes
Racism
Sexism
Physical disabilities
Homelessness
Mental disabilities
Poor education
Types
Frictional
Unemployment for a short period of time between jobs
Cyclical
Insufficient demand for all workers to work at a particular job
Seasonal
Unemployed at certain times of the year (ski instructor)
Unemployment
Individual without a job who is seeking one
Structural
Changes in the market making someone's skill irrelevant (a robot can do it now)
Downsides
Fall in demand for goods and services
Could lead to a negative multiplier
Lower economic growth
Lower real incomes
Higher crime rates, divorce rates, worse health + lower life expectancy
Benefits
Less pressure to pay higher wages
Less risk of firing and therefore less risk of striking
Lowers wage rates
Reduces inflationary pressures
Solutions
Fix the causes stated