Course of the action

Types of unemployment
 Cyclical unemployment
 Come out when there is no fertility in business, consumer demand decreases
and labor demand decreases also. Increase in cyclical unemployment is meant by
the economy decreases.
 Frictional unemployment
 Take place when an individual changes from their present job to another job. As
they leave their job they may not find a job right away.
 Structural unemployment
 Occurs when there is a conflict between what an individual expects and the
available jobs, it’s because the individual can be overqualified or underqualified
for the job.
 Underemployment
 Happens when an individual have jobs but cannot make use of their skills and
works less hours.
 Hidden unemployment
 Result when an individual doesn’t belong to a labor market demographics but
willing to work since it’s extremely difficult to search one.
 Seasonal unemployment
 They are seasonal and arise during the off season.

Causes of unemployment
 High-interest rates:
Banks increases their interest rates, companies’ expenses increases.
Therefore they cut their salaries to save their financial resources. Whereas,
they may not hire new workers which causes the unemployment rate to
increase.
 Population increase:
Happens when the population expands as the number of people needing
jobs will also increase.
 Recession economic growth:
Economic growth rate becomes slow therefore the economy may not
create appropriate jobs.
 Technology advancement and lack of skills:
 Technology is advance so the technology is easily used rather than humans
such as artification intelligence.
 Underdeveloped labor markets:
People may be qualified or not qualified.
 Natural rate of unemployment:
Companies may decide to pause hiring due to welfare laws.
Effects of the unemployment
  In every economy, workers starts to reduce their consumption because
they might be afraid that they will be laid off shortly.
 Rise in crime rates and poverty in the nation of unemployment on
individuals.
 Uncertainty is one of the main impact of unemployment.