Unemployment

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

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

People who are employed plus those actively seeking work.

Frictional, seasonal, and structural unemployment.

Unemployment not reflected in official figures, e.g., discouraged workers.

Short-term unemployment as workers transition between jobs.

Stress, loss of income, reduced self-esteem.

An AD/AS diagram showing a deflationary gap.

Unemployed ÷ Labor force × 100

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

Investment in education and retraining programs.

Due to the decline of certain industries in specific areas.

Unemployment due to a mismatch between workers’ skills and job requirements.

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

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

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

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

Unemployment due to seasonal changes in demand for labor.

Increased crime, family breakdown, social exclusion.