Unemployment

The sum of structural, frictional, and seasonal unemployment when the economy is at full employment.

Discouraged workers and underemployment are not fully captured in official statistics.

Unemployment due to seasonal changes in demand for labour.

People who are employed plus those actively seeking work.

Unemployment caused by a fall in aggregate demand in the economy.

It ignores discouraged workers and underemployed part-time workers.

Increased crime, family breakdown, increased poverty, social exclusion.

Due to the decline of certain industries in specific areas.

Stress, loss of income, permanent deskilling, reduced self-esteem.

Short-term unemployment as workers transition between jobs.

Frictional, seasonal, and structural unemployment.

It can lead to a surplus of labour if set above the equilibrium wage.

Unemployment due to a mismatch between workers’ skills and job requirements - sectoral, regional and technological.

A labour market diagram showing demand shifting inwards or an AD/AS diagram showing a deflationary gap.

Lost output, lower productivity, increased government spending on welfare, lower tax revenue.

Unemployed ÷ Labor force × 100

Investment in education and retraining programs.

A labour market diagram with a leftward shift in the demand for labor.

The percentage of the labor force that is actively seeking work but unable to find a job.