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unemployment occurs when people over 15 years of age are jobless but are available to work and are actively looking for work. Maintaining a low unemployment rate is one of the major macroeconomic goals of most developed countries.

• Structural unemployment happens when the job skills required for available jobs do not match the skills of the unemployed available to fill those jobs. This is more prevalent when a large portion of the population is unemployed for long periods of time and their skills become redundant. Structural unemployment can be triggered by improvement in technology and the job loss from this can also be classified as Technological unemployment.
• Frictional unemployment occurs naturally just by people changing jobs, people re-entering the workforce after a long leave of absence or student entering the workforce.Casual unemployment is another specific category that applies to people whose contract job has ended and are still searching for another position.
• Cyclical unemployment results from recurring business cycles. It specifically happens during the contraction phase.With countless unemployed who have less money to spend on products this results in less money for firms and therefore more layoffs as the result. Demand for products slips and then production follows over and over until governments step in to slow the process.
• These may be the most common types of unemployment however, seasonal unemployment does exist. This type of unemployment is adjusted seasonally to account for this figure. IE. The summer adjusted unemployment rate will be lower than the actual unemployment rate for that same time due to student employment.

Explain what is participation rate in the labor force?

The participation rate is the calculation of all people that are working age (over 15 years old) and are actively employed or seeking work. It helps economists measure how much labour is available to make the products and provide the services needed in that marketplace.

How much does the labor force participation rate affect the unemployment rate?

The unemployment rate is calculated using the labour force participation rate. It is the percentage who are classified as unemployed in the labour force pool. Since the labour force participation rate consists of all people over 15 years willing, able, or actively seeking to work when unemployed people become discouraged and stop looking for work, they fall out of the labour force. When baby boomers retired and dropped out of the labour force the participation rate dropped drastically over that period. As with stay-at-home parents or students who are working age the unemployment rate may not be the best judge of the current job market as the participation rate in measuring these numbers.

Doyou think one type of unemployment is worse than others and why?

Structural unemployment is one of the 2 most common forms of unemployment. Since this type of unemployment is caused by things outside of normal business cycles and is not voluntary it may be the most damaging. It can last much longer than other types of unemployment and many times needs extreme measures to remedy. With this prolonged situation it can increase the natural rate of unemployment well past economies recover. Unemployed workers are forced to learn new skills or move to where there are jobs available for them.

What can governments do to assist in reducing this type of unemployment?

Governments are quick to introduce policies that boost the economy in ways that increase GDP numbers. Boosting product demand through government spending and taxation, the implementation of other policies to affect the money supply, interest rates and inflation are only the first step. They do not address the cause for the unemployment in the first place. These workers are still under skilled for the job market and not physically close enough to the real jobs. If businesses cannot find the skilled workers to produce the products and people are still unemployed and cannot afford to purchase the products this is only a plan and not a solution.The government will have to implement training programs to retrain the unemployed workers, provide businesses with incentives to hire the unemployed in their local area and give housing subsidies for job relocation when the unemployed cannot find it locally.