Types of Unemployment, Causes, Effects And Solutions - SS2 Economics Past Questions and Answers - page 1
What is frictional unemployment?
Unemployment caused by a mismatch of skills and job requirements.
Unemployment caused by a downturn in the economy.
Unemployment caused by people being in between jobs.
What is the cause of structural unemployment?
Changes in personal circumstances.
Changes in technology or consumer demand.
Economic recessions and downturns.
What is the effect of cyclical unemployment?
A decrease in consumer spending and a slowdown in economic growth.
Short-term unemployment for workers.
A long-term situation where workers do not have the necessary skills for available jobs.
What is the cause of seasonal unemployment?
Changes in demand for goods and services due to seasonal fluctuations.
Automation and technological advancements.
Lack of job opportunities.
What is a possible solution to structural unemployment?
Government intervention and job creation programs.
Encouraging businesses to offer year-round employment.
Retraining programs and education and skills development.
What is the difference between frictional and structural unemployment?
Frictional unemployment is caused by people being in between jobs or searching for their first job, while structural unemployment is caused by a mismatch between the skills of workers and the skills required for available jobs.
What are some of the solutions to reduce cyclical unemployment?
Government intervention such as stimulus spending and job creation programs can help to reduce cyclical unemployment.