Various Types of Unemployment

711 Words Feb 5th, 2018 3 Pages
United States is not an exception, citizens have complained to the government for lack of job and have demanded for a quick and strategic action to be taken to solve the problem, however unemployment is an issue that cannot be completely solved because of the many aspects that has to be considered by different stakeholders.
There are basically three types of unemployment:
Frictional unemployment-this reflects transitions of peoples between jobs. It does not mean that if some people never have jobs then there are no existing jobs, (Neva R. Goodwin, 2013). People ever look for suitable jobs for a long duration whether in well-functioning economy. A 0% rate of unemployment happens when each and everyone who needs a job enter into another one immediately. However, it is impossible for this to take place and its some how undesirable. Also when people take the first job that is available is considered not suitable for an individual looking for a job, as well as to the entire economy.
Structural unemployment-this happens in case there is a mismatch between the available jobs that are offered by the employers and the education, experience, geographical location of a potential employees, and skills. The main causes of structural unemployment tend to be sectional shift, meaning that as employment in some sectors falls other sectors rise. For example economy of U.S. may be offering…