Unemployment

Unemployment comes in various forms.

Seasonal
Seasonal unemployment is when some businesses can only operate in certain seasons and therefore the employees have no work during the off-season.

An example is ice cream vans who have no business during the winter.

Frictional
Frictional unemployment is when workers become temporarily unemployed while switching jobs.

Cyclical
Cyclical unemployment is when the economic cycle causes unemployment during a recession ("bust").

Structural
Structural unemployment is when a firm is no longer able to employ its workers and makes them redundant.

Real Wage
Real wage unemployment is when wages are above the equilibrium level, causing the supply of labour to be greater than demand.