What are the main reasons for unemployment Why is there more unemployment in some countries than
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What are the main reasons for unemployment?
Why is there more unemployment in some countries than others?
Evaluate policies for tackling unemployment
Involuntary Unemployment measure the members of the potential workforce who are actively seeking employment.
Unemployment usually can be one of more of four types, when it is involuntary: frictional unemployment, cyclical unemployment, structural unemployment and seasonal unemployment.
When unemployment is frictional, it is the unemployment while someone is changing job. 3% of US citizens change jobs every month. This type of unemployment ensures that there are always people out of a job in even a very strong economy.
When unemployment is cyclical, it is unemployment caused by a fall in aggregate demand, thus causing companies to have to sack employees, in order to minimise loose of profits.
When unemployment is structural, it is unemployment caused by either a low demand relative to supply of jobs, or a high supply relative to demand for people willing to work, as shown on the following graph.
Seasonal unemployment is caused by a fall in demand for employees due to jobs existing for only certain parts of the year, for instance: skiing, summer tourism and various types of agriculture...