1.

Unemployment and unemployment classification

A. Unemployment

According to the International Labor Organization (ILO), Unemployment is a situation in which

several people in the labor force want to work but cannot find work at prevailing wages.

In Vietnam, Unemployed are people of working age, capable of working, in need of work,
currently unemployed, and looking for work.

B. Classified by type of unemployment

Unemployment is a complex phenomenon that needs to be classified to understand it clearly.

Can be divided into the following types:

1. Classification by type of unemployment

- Unemployment divided by gender (men - women)
- Unemployment divided by age (age - occupation)
- Unemployment divided by territory (urban, rural…)
- Unemployment is divided by ethnicity and race.
2. Sort by reason for unemployment
- Quit job: People who voluntarily quit their job for different reasons such as low salary,
not suitable for the job, ...
- Loss of job: People who are laid off from their jobs by production and business units for
some reason.
- New entrants: People who are adding to the labour force for the first time, but have not
yet found a job, and are actively looking for work.
For example, young people of working age looking for a job, or graduates looking for a
job...
- Re-entry: People who have left the labour force now want to return to work but have not
found a job.
3. Classification by origin of unemployment
- Temporary unemployment: Occurs when some workers are looking for jobs
or looking for better jobs that suit their own needs.
- Structural unemployment: Occurs due to the mismatch between the structure of labour
supply and demand in terms of skills, occupations, locations, etc.
For example:
 + When mobile phones are introduced, the number of landline phones in use decreases,
and workers in the landline phone manufacturing industry will experience structural
unemployment.
+ It is recognized that bicycle manufacturing companies suffer from structural
unemployment because people switch to using motorbikes as their main means of
commuting to work.
- The above two types of unemployment only occur in a part of the labor market.
- Cyclical unemployment (unemployment due to lack of demand): Occurs when the
general demand for labour decreases. The main cause is the decline in aggregate demand
in the economy and is associated with the recession period of the economic cycle. This
unemployment occurs across the entire labour market.
- Unemployment due to non-market factors: Occurs when wages are set higher than the
actual equilibrium wage of the labour market. This type of unemployment is influenced
by socio-political factors.
4. According to modern analysis of unemployment
- Voluntary unemployment: Only people who "voluntarily" do not want to work because
their job and salary do not match their expectations.
- Involuntary unemployment: Only people who want to work at the prevailing wage but are
not hired.
- Natural unemployment: This is the unemployment level when the labour market is in
equilibrium. There, wages and prices are reasonable, and the markets reach long-term
equilibrium.