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What Are the Different Types of Unemployment and How Do They Impact the Economy?

Unemployment is the term we use when people cannot find jobs. There are four main types of unemployment:

  1. Frictional Unemployment: This type is temporary. It happens when people are moving from one job to another. It usually makes up about 2% of all unemployment.

  2. Structural Unemployment: This type happens because of changes in the economy. For example, new technology can change how certain industries work. Structural unemployment accounts for about 3-4% of people without jobs.

  3. Cyclical Unemployment: This type is related to the ups and downs of the economy. When the economy is doing poorly, like during a recession, this type can increase by 5% or even more. This can hurt the overall growth of the economy.

  4. Seasonal Unemployment: This type occurs in certain jobs during specific times of the year. It typically affects about 1-2% of workers each year.

In 2020, the overall unemployment rate in the UK was about 4.8%. This number is important because it can affect how the economy grows and how stable society is.

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What Are the Different Types of Unemployment and How Do They Impact the Economy?

Unemployment is the term we use when people cannot find jobs. There are four main types of unemployment:

  1. Frictional Unemployment: This type is temporary. It happens when people are moving from one job to another. It usually makes up about 2% of all unemployment.

  2. Structural Unemployment: This type happens because of changes in the economy. For example, new technology can change how certain industries work. Structural unemployment accounts for about 3-4% of people without jobs.

  3. Cyclical Unemployment: This type is related to the ups and downs of the economy. When the economy is doing poorly, like during a recession, this type can increase by 5% or even more. This can hurt the overall growth of the economy.

  4. Seasonal Unemployment: This type occurs in certain jobs during specific times of the year. It typically affects about 1-2% of workers each year.

In 2020, the overall unemployment rate in the UK was about 4.8%. This number is important because it can affect how the economy grows and how stable society is.

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