The type of unemployment Melanie is facing in the given situations. Concept Introduction: Unemployment: Unemployment refers to a situation when a person who is of an age relevant to work and earn, does not have any work and is looking for a job actively. Types of Unemployment: There are three types of unemployment as given below: Cyclical Unemployment: When the economy faces recession, many people lose their jobs and face unemployment and when the recession period is over, people get back their jobs. This cycle is known as cyclic unemployment. Structural Unemployment: With the change in time, the demand for some skills increases in the employees. When the demand for a specific skill increases, the people who do not possess that skill get unemployed. This is known as structural unemployment. Frictional Unemployment: Sometimes, people may be voluntarily out of job due to reasons like, looking for better opportunities or moving to a new location. This is referred to as frictional unemployment.

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Chapter 23, Problem 3P

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The type of unemployment Melanie is facing in the given situations.

Concept Introduction:

Unemployment: Unemployment refers to a situation when a person who is of an age relevant to work and earn, does not have any work and is looking for a job actively.

Types of Unemployment: There are three types of unemployment as given below:

Cyclical Unemployment: When the economy faces recession, many people lose their jobs and face unemployment and when the recession period is over, people get back their jobs. This cycle is known as cyclic unemployment.

Structural Unemployment: With the change in time, the demand for some skills increases in the employees. When the demand for a specific skill increases, the people who do not possess that skill get unemployed. This is known as structural unemployment.

Frictional Unemployment: Sometimes, people may be voluntarily out of job due to reasons like, looking for better opportunities or moving to a new location. This is referred to as frictional unemployment.

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