The following are the various types of unemployment:
FRICTIONAL Unemployment
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Normal type of labor market turnover
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Made up of those temporarily out of job in search for new ones
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For example those who are constantly changing their economic activities, those who were laid off temporarily due to seasonal demand or school leavers joining the labor force
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STRUCTURAL Unemployment
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Arising from a change in the structure of the economy
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Example: decline of one industry and the rise of another.
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Unemployment arises as the unemployed needs to learn new skill sets in the new industries or need to relocate to a different areas for the new industries.
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CYCLICAL Unemployment
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Arising from a slowdown in the pace of economic expansion like recession, depression
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When the economy is contracting like in a recession, cyclical employment can become extremely high
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SEASONAL Unemployment
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Common in many countries where certain seasons during the year require more workers.
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Due to seasonal unemployment, the labor cannot be utilized fully the whole year round.
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Example, during rainy seasons the fishermen and construction workers become unemployed.
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TECHNOLOGICAL Unemployment
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DISGUISED Unemployment
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Arises when people are working but not contributing to the productivity.
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For example, 15 workers are doing a job and it can be done by 7 workers
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