What is unemployment? Give example?

Unemployment refers to the situation where individuals who are willing and able to work are unable to find employment. This can be due to various factors such as lack of available jobs, mismatch of skills, or economic downturn.

For example, if a recent college graduate is actively seeking employment but is unable to find a job in their field, they would be considered unemployed. Similarly, if a factory shuts down and lays off its workers, those individuals would also be considered unemployed until they are able to find new employment.

Definition:

Unemployment is a state in which an individual who is actively seeking work is unable to find a paid job.

Examples:

- Frictional unemployment: This occurs when workers are temporarily unemployed while searching for a new job that is a better fit for their skills and experience. For example, a recent college graduate may be searching for a job that aligns with their major.
- Seasonal unemployment: This occurs when jobs in certain industries are only available during specific seasons. For example, agricultural workers may be unemployed during the winter months.
- Structural unemployment: This occurs when the skills and qualifications of workers are no longer in demand due to technological advancements or changes in the economy. For example, automation may eliminate jobs for factory workers.
- Cyclical unemployment: This occurs during economic downturns when businesses reduce production and lay off workers. For example, during a recession, companies may have to let go of employees to cut costs.
- Long-term unemployment: This occurs when individuals have been unemployed for a year or longer. Long-term unemployment can significantly impact an individual's financial stability and career prospects.