Types of Unemployment Voluntary Seasonal Structural

types of unemployment

Unemployment: unemployment refers to a situation in which the workers who are capable of working and willing to work do not get any job or employment. There are different types of unemployment that are discussed in this article.

Definitions:“Unemployment refers to the condition of unwanted job losses or unwilling workers without the job. They willing of the unemployed workers to be employed in the key of ideas.”

“A person who is physically fit, mentally sound, well qualified and willing to work at offered wage rate but does not get a job this situation is basically called unemployment”.

The term unemployment is classified into types:

  • Voluntary unemployment
  • Involuntary unemployment

Voluntary unemployment:

Unemployment has occurred when the resources are willing and able to engage in production but not choose to produced output. These people leave their current job in search of others.

Involuntary unemployment:

In involuntary unemployment, the resources are forced to work it’s also called forced unemployment. Get a freelancing story for more solution.

What are the Types of Unemployment

  • Cyclical unemployment
  • Structural unemployment
  • Seasonal Unemployment
  • Technical Unemployment
  • Frictional Unemployment:
  • Disguised Unemployment


1. Cyclical unemployment

This type of unemployment when there is a great availability of workers than the job vacancies. It happens when there is a lower demand for the products due to a lack of customer confidence, the disinterest of customers due to fewer amounts of cash. Cyclical unemployment is based on say’s law. Cyclical unemployment indicated the increase in production which leads to increase demand for the output (production). Cyclical unemployment occurs when there is not enough aggregate demand in the economy to provide a job for everyone who wants to works. The demand for goods and services fall which show fewer workers. Cyclical unemployment is also called cyclical because it’s linked with the business cycle.

2. Structural unemployment

This type of unemployment occurs in the economy when the structure of an organization change in the dynamic economy unemployment is occurred due to a mismatch of skills or geographical location is noted for this unemployment. Structural cost brought more problems because workers find new jobs elsewhere. They should develop the skills which are demanding into their particular job requirement. This process is to create more problems and also carries more pain for the people. It show the negative impact on society.

For example

  • 1. Heavy machine replaces the cost of labour because no more labour required doing particular work on the machine.
  • 2. The change in technological fired many workers because they have not skilled and not know how to use to technology.
  • 3. It’s unemployment which is caused by a lack of skills.

3. Seasonal Unemployment

Seasonal unemployment refers to a situation when the number of people is not in a condition to find a job during some month of the year. Seasonal unemployment is a working agreement where the workers are employed up to a certain part of the year. When such a particular time is passed then these people are considered unemployed.

For example

  • People who are engaged to house building job they can do work only when house building jobs are available.
  • Agriculture is a seasonal job. There is a great demand for labour at the time sowing, harvesting, and threshing. After this time there is no demand for labour. the agriculture employers are finding during this period only after this, they will consider unemployment.

4. Technical Unemployment

This unemployment has occurred when there is change occurred in technology and also a method of industry and new manufacturing process is used. An increase in technology brought unemployment because people are replaced by capital goods and machinery because they make the job easier and quicker.

For example

  • It makes the cost of labour and productivity less expensive which would make the business more efficient for earning profit. This situation brings deflation because the prices are fall and increase in supply.
  • The innovation in automobile assembling plant. In the start everything and by human beings now produced through machines.

5. Frictional Unemployment:

Frictional unemployment is the type of voluntary unemployment. It’s happened because of the time needed to match the job seekers with job opening. The Fraction always takes place when the slider comes into final place on the surface. Similarly, people need time to fire the best suitable job during this period they stay unemployed.

For Example

When people make up a mind to get the best and effective job, during this period they remain to stay unemployed.

6. Disguised Unemployment

This types of unemployment have occurred the number of people has employed the same or a single activity.

For example

Agriculture needs only 3 labours but the 6 labour work on the same work.

7. Regional Unemployment

Regional unemployment is simply structured unemployment that occurs in a specific region of a country.

For example

The change which occurs in the south wale coal mine has left many people unemployed in that region because mostly [people in this region.

8. Classified Unemployment

Classified types of unemployment occur when the people are able to work they are not chosen to work. They have sufficient cash and .they have no need to more. In many places, the rate of unemployment decreases because of payment made for sufficient. Form above and follow from my knowledge. The research and apply personal knowledge technology change earned and bring those which old one replace with the new one. Replace their job to human labour replace with a machine.

What is the Cost of unemployment?

Individual: Unemployed individuals are unable to earn money to meet financial needs. Unemployment increases the chances of illness, mental stress, and leading depression.

Society: In the economy with high unemployment is not using all the resources such as which reduced the production capacity which leads to unemployment.


The economist always forces on the unemployment rate which is found by Applying the following:

ü Formula

Unemployment=unemployed workers/total Labour force*100

Unemployed workers are those who are not working but able and willing to work.