got this econ question...dunno how to answer

[luvya]

Explain the difference among the frictional, the structural, and the cyclical forms of unemployment.

I know frictional is unavoidable..structural...mmh..not so sure
cyclical depends on the state of economy, if economy goes bad, the company laid off would be cyclical....
could anyone phrase it better or give a better idea?
thank u

 

[worth]

It's explained pretty well in this thread.

 

[gotsmack]

structural is when you get placed out of the job market because of changes in the industry made your job non-existant.

an example would be people who made horse shoes a ling time ago. < I know this a weak example > Because of the introduction of the internal combustion engine these guys who specialized in making horse shoes eventually had no more business because very few people had horses.

 

[Geforcekj]

Cyclical is unemployment caused by fluxuations in the Business Cycle,
Frictional is unemployment caused when the labour force is ina phase of change...take for example the assembly line, it put a lot of people out of work because of its increaed efficiency, these epople would then learn new skillz and get a job, they were frictionally unemployed.
Structual Unemployment: is unemployment caused by a miss allocation of resources in the ecconomy, given by Welfare (social assistace), Unions, Unemployment insurance etc...

 

[luvya]

<< It's explained pretty well in this thread. >>



Thanks for linking THIS thread for me :frown:

 

[Geforcekj]

<< It's explained pretty well in this thread. >>



you're a turd

 

[b0mbrman]

All of them have members who overlap

frictional = people who leave their jobs (quit) to find better jobs...This is *good* for the economy because we're assuming they're getting a job better suited to their abilities. Frictional unemployment is not considered when we talk about the full employment level

structural = people who have no job because the demand for their skills has gone away due to technology. This is *bad* for the economy because these people either need to be retrained (which costs money) or go on social security or welfare. Seasonal unemployment is not considered when we talk about the full employment level

cyclical = though our economy has shown to be ever-growing, there are always cycles. At some points it's expanding and others, it's contracting. Those who lose their jobs while the economy is contracting are considered a part of cyclical unemployment. The full employment level is the absence of cyclical unemployment.