Types Of Unemployment

Aatika Seedat
Mind Map by Aatika Seedat, updated more than 1 year ago
Aatika Seedat
Created by Aatika Seedat over 3 years ago
185
5

Description

Types of Unemployment in macroeconomics

Resource summary

Types Of Unemployment
1 Technological
1.1 innovations which increase productivity creates unemployment
1.2 rise of internet has displaced workers
1.3 Workers with low and outdated skills are most likely to be affected.
2 Frictional Unemployment
2.1 Transitional Unemployment because people are moving between jobs
2.2 Unavoidable and desirable as job vacancies can be fulfilled.
3 Structural Unemployment
3.1 When there is a long-term decline in demand in an industry
3.1.1 Leading to fewer jobs demanded
3.1.2 Jobs on a production line being replaced by robots
3.1.3 Most things now done online eg. Online banking
3.1.4 Unemployment caused by foreign competition
3.2 Mismatch between workers' skills and requirements in new jobs
3.2.1 Workers need to be re-trained and given experience
3.3 Globalisation
3.3.1 trade between countries has changed
3.4 Causes
3.4.1 Decline in manufacturing Industry
3.4.2 Occupational Immobility- when it is difficult to move between jobs
3.4.3 Geographical Immobility- When it is difficult to move between areas
3.4.4 Robots replacing jobs
3.4.5 Foreign Competition- imports increased
3.4.6 Long term Regional decline
3.4.7 Outsourcing production Overseas
4 Cyclical Unemployment
4.1 Involuntary unemployment due to lack of demand for goods and services
4.2 During Recession unemployment increases as businesses fail
4.2.1 Workers made redundant off
4.2.2 Firms reduce employment to cut costs
4.2.2.1 Labour Shedding
4.3 Unemployment also occurs during slowdown phase of an economy
4.4 More likely to occur when there is a negative output gap
Show full summary Hide full summary

Similar

Economic Growth
Maya Khangura
Macroeconomics year 1
Nkolika Ezepue
Chapter 16: The objectives and instruments of macroeconomic policy
callum_j.smith
Dictionary Macrostructure
Ash A
Chapter 15: Introducing macroeconomics
callum_j.smith
Monopolistic Competition VS Oligopoly
Tammy Sim
Exchange rates
callum_j.smith
Using GoConqr to study Economics
Sarah Egan
Economics
Emily Fenton
Economics - unit 1
Amardeep Kumar
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll