Types of Unemployment

There are different forms of unemployment in the labor market. They include structural, fictional, cyclical and seasonal. Fictional unemployment occurs as a result of time required for job seekers to meet with the right employer. Seasonal unemployment is caused by changes in seasons which result to changes in labor demand for instance most outdoor jobs such as farming, construction and lifeguard are less required during winter. Cyclical unemployment occurs mostly during recessions as the output decline. During this time companies reduce their demand for about all kinds of resources labor included. Structural unemployment happens when the available job vacancies do not fit the available job seekers qualification or where specific skills are needed and the job seekers do not have these skills (McEachern, 2012).

Classifying the Described forms of Unemployment as Fictional, Structural, Cyclical, or Seasonal

  1. A UPS employee who was hired for the Christmas season is laid off after Christmas.

This is a seasonal form of employment where labor is increased when demand is high and reduced when demand is low based on seasons. More workers were needed due to pressure that comes with charismas but after Christmas the pressure ends and so is the need for labor.

  1. A worker is laid off due to reduced aggregate demand in the economy.

This is cyclical form of unemployment which is caused by recession in the economy that reduces the output and hence the need for a number of input recourses including labor.

  1. A worker in a DVD rental store becomes unemployed as video on-demand cable service becomes more popular.

This is structural form of unemployment, since the retrenchment happens as a result of mismatch in skills between the previous workers and the current embraced technology.

  1. A new college graduate is looking for employment.  

This can fit in fictional form of unemployment since the unemployment is caused due to the inability of the workers to meet their rightful employer despite of there being employer needing employees with qualifications similar to theirs.

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