Economist divide unemplyment into three categories: frictional, structural and cyclical.
fractiona unemployment: Unemployment that is always present in the economy, resulting from temporary transitions made by workers and employers or from workers and employers having inconsistent or incomplete information. For example: We have a person who has a propostion to work in a factorie, but he/she doesn't choose that work, because he/she wait for a better payment job.
Structural unemployment: Unemployment resulting from changes in the basic composition of the economy. These changes simultaneously open new positions for trained workers. For example If we can imagine a person who is redandent because of a technological expansion. For example computers are bought and company have to reduce people without work.
Cyclical unemployment: Economists describe cyclical unemployment as the result of businesses not having enough demand for labor to employ all those who are looking for work. The lack of employer demand comes from a lack of spending and consumption in the overall economy.
Bruce Springsteen shows in his song called 'the river', kind of uneployment which occures in economic. The song describe history of the man who lost the work, because of recession occured on the market, he lost the job, because in the fabric were he worked, there was no place already for him.
Current ratio
7 years ago
