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Seasonal unemployment may be seen as a kind of structural unemployment, since it is a type of unemployment that is linked to certain kinds of jobs (construction work, migratory farm work). The most-cited official unemployment measures erase this kind of unemployment from the statistics using "seasonal adjustment" techniques.
Frictional unemployment occurs when a worker is voluntarily between jobs. This is normal and healthy for the economy, as it increases the matches between job openings and seekers. Structural unemployment is caused by structural changes in the economy. This includes technological changes and the movement and relocation of certain industries.
Colloquially, this may refer to work which is undesirable to most people or pays poorly – for instance, in the United States economy, many fast-food and retail industry jobs represent last-resort employment for many workers. [1] In economics, the phrase often refers to employers which can hire workers when no other employers are hiring.
Unemployment of this kind can take two forms: frictional and structural. Frictional unemployment is where the unemployed are searching for the best possible jobs whilst employers are also searching for the best possible employees to fulfil those jobs.
Many factors contribute to the existence of undesirable equilibriums, among which two are crucial for underemployment equilibrium: oversupply and insufficient demand. When the labor force are overeducated for the skill level of available employment opportunities in the economy, an underemployment equilibrium will occur.
The implication is that sustained high demand may lower structural unemployment. This theory of persistence in structural unemployment has been referred to as an example of path dependence or "hysteresis". Much technological unemployment, [21] caused by the replacement of workers by machines might be counted as structural unemployment ...
In an economy with involuntary unemployment, there is a surplus of labor at the current real wage. [1] This occurs when there is some force that prevents the real wage rate from decreasing to the real wage rate that would equilibrate supply and demand (such as a minimum wage above the market-clearing wage). Structural unemployment is also ...
For pessimists, technological unemployment is one of the factors driving the wider phenomena of structural unemployment. Since the 1980s, even optimistic economists have increasingly accepted that structural unemployment has indeed risen in advanced economies, but they have tended to attribute this on globalisation and offshoring rather than ...