Identify which type of unemployment is increasing in each of the below scenarios. The government extends the length of time an individual may receive unemployment insurance: cyclical,frictional,structural The government increases the minimum wage: cyclical,frictional,structural The economy enters a recession: cyclical,frictional,structural Certain types of jobs begin to disappear as consumer habits change: cyclical,frictional,structural Companies begin to pay higher wages to attract talented employees and increase their productivity: cyclical,frictional,structural
Identify which type of
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- The government extends the length of time an individual may receive unemployment insurance: cyclical,frictional,structural
- The government increases the minimum wage: cyclical,frictional,structural
- The economy enters a recession: cyclical,frictional,structural
- Certain types of jobs begin to disappear as consumer habits change: cyclical,frictional,structural
- Companies begin to pay higher wages to attract talented employees and increase their productivity: cyclical,frictional,structural
Unemployment is a state when particular worker is looking for work but is not able to find work because of some reason. Then this particular person is termed as unemployed.
There are three major types of unemployment which are as follows :-
Frictional unemployment - It is because of voluntary employment transitions in the economy. A person when in Frictionally unemployed means that the person has left his job and is looking for a new one.
Structural unemployment - Increase in unemployment because of change in the structure of the economy. It may be because of miss match of skills that are required for the jobs and that are available with the labor. It may be because of decline in demand for labor because of some reason, etc.
Cyclical unemployment - Increase in unemployment because of the bust cycle, when economy enters into recessionary cycle, it causes unemployment to increase.
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