Quiz #1

Guess the topic…

Objectives

a.List and explain the different types of

unemployment.
b.Depict the types of unemployment
Healthy People ar
e the greatest asset
any country can
have
Total Labour Force

 Potential amount of people

who would work within the
working ages of 18 and the
national age of retirement,
usually 65 regardless of
their employment situation
(employed and
unemployed)
 TERMS: employment, unemployment,
underemployment
Employment
 -A person is considered
employed if the person has
a full-time job and obtains
a salary or wage consistent
with the qualifications
he/she possesses.
Unemployment
 any person who is actively
seeking employment and is
willing and able to work but
unable to find work is
considered to be
unemployed.
Underemployment
 When a person has a
temporary job
whereby he/she works
part time rather than
full time
 When individuals
accept jobs for which
they are over
qualified.
Video- Types of Unemployment: Frictional, Structural, Cyclical, and Seasonal
 https://youtu.be/-1cfJPEYkkk

IDENTIFY ONE
TYPE OF
UNEMPLOYMEN
T MENTIONED IN
THE VIDEO
Types of unemployment

1. Frictional

2. Search

3. Seasonal

4. Structural

5. Cyclical

6. Real wage
 Types of unemployment

Frictional-
• occupationally or geographically immobile.
• The unemployed do not have skills to
match the jobs,
• or they are unwilling or unable to move to
the part of the country where the job is.
• Those persons who are between jobs are also
frictionally unemployed.
Types of unemployment

2. Search unemployment- the

unemployed does not take the
first job because they are
searching for better paying and
more suitable jobs.
 Types of unemployment
3. Seasonal unemployment- some workers only have jobs at certain
times of the year, when there is a demand for certain products or when a
particular crop might be in season. Tourism, agriculture, and
construction.
 Types of unemployment

4. Structural unemployment- occurs as a result in

the structure of an industry for the following causes:

• Improvements in technology/technological-
• Falling world demand for export-
• Technological progress
 Types of unemployment

4. Structural unemployment-
occurs as a result in the structure of
an industry for the following causes:

• Improvements in technology/technological-
capital replaces labor also known as
technological unemployment.
 Types of unemployment

4. Structural unemployment-
occurs as a result in the
structure of an industry for the
following causes:

• Falling world demand for export- leads

to reduced output and so firms employ
less labor
 Types of unemployment

4. Structural unemployment-
occurs as a result in the structure
of an industry for the following
causes:
• Technological progress can make the
products of an industry obsolete and so
cause demand to fall.
Types of unemployment

5. Cyclical unemployment-.
Unemployment that occurs
during a recession. It can last
for the best part of a year, or
much longer if the recession is
prolonged.
• A fall in demand leads to a reduced
output, and less factors of production
employed, therefore unemployment
increases.
 Types of unemployment

6. Real-wage unemployment- happens when trade unions succeed in raising the wage
rate above the equilibrium level.

Here people are being paid a higher money wage than what the market would pay them for
their work, businesses may lay off some workers.

Some economists believe that unemployment is also caused when the government sets
minimum wages higher than the market rate.

At wages above equilibrium level, supply of labour exceeds demand for labour and the
surplus labour is unemployed.
$5

$ 3.30
 In groups

 Createa scenario on the types of unemployment assigned to

your group
 4-12

1. Frictional

2. Search

3. Seasonal

4. Structural

5. Cyclical

6. Real wage
 4-13

1. Frictional

2. Search

3. Seasonal

4. Structural

5. Cyclical

6. Real wage
 Complete the table below using your textbook

Type of Causes of Ways to reduce

unemployment unemployment unemployment
Frictional    

 Search  income derived from a  creation of industries through

manufacturing industry is higher; the government.
therefore, people prefer to remain
unemployed until they secure a job
in the industrial sector.
 Seasonal    

 Structural    

 Cyclical