UNEMPLOYMENT

Exercise 1
Match the following terms with the definitions from 1 to 6
classical unemployment seasonal unemployment
cyclical unemployment structural unemployment
frictional unemployment voluntary unemployment
1. Seasonal unemployment exists in trades or occupations where work fluctuates according to the
time of year.
2. Voluntary unemployment exists when people choose not to work, often because they cannot
find jobs that pay enough money (e.g more than social security benefits).
3. Frictional unemployment is temporary unemployment that arises when people voluntarily
leave a job to look for another one.
4. Classical unemployment is the loss of jobs caused when wages are too high.
5. Cyclical unemployment occurs during recessions, when the overall demand for labor declines.
6. Structural unemployment occurs when the skills of available workers do not match the jobs
vacant.

Exercise 2
Use those terms to label the following statements:
1. I lost my job with 4,000 other people when they closed down the coal mine.
- Cyclical unemployment
2. I work with a travelling circus in the summer, but it's just closed for winter.
- Seasonal unemployment
3. The union went on strike for an 8% pay rise. They got it, but the company laid off ten of us.
- Classical unemployment
4. It's crazy - the only jobs available round here pay less than I get from Social Security.
- Voluntary unemployment
5. I'm a skilled electrician, but there's such a slump in the construction industry right now that
I'm out of work.
- Structural unemployment
6. I left my job last week after an argument with my boss. I'm sure I can find something better.
- Frictional unemployment