Question
Need help to respond to this post The first type is Cyclical unemployment where unemployment is closely tied to the business cycle. When there is
"Need help to respond to this post"
The first type is Cyclical unemployment where unemployment is closely tied to the business cycle. When there is a recession there is likely a higher chance of unemployment and vice versa. Frictional unemployment occurs as workers move between jobs. Essentially these workers are only unemployed due to the fact that they are finding new and possibly better jobs. Structural unemployment is when either people can't find jobs due to their lack of skills valued by companies or they get laid off due to the facts that they don't fit the companies needs. I believe technology is playing a big part in taking these jobs away since technology has almost an unlimited amount of skills. The natural rate of unemployment is the rate of unemployment that happens in a healthy and growing economy, which is the sum of frictional plus structural unemployment. I have never experienced unemployment as I have been employed since high school, although I did take a few months off from the job I have now and my past job. California's current rate of unemployment is 4.1%. North Carolina's unemployment rate is 3.5% and was 3.7% six months prior. Texas's unemployment rate is at 4.1% and was 4.7% six months prior. I think the numbers are a little surprising since I felt like Texas would have a lower rate of unemployment. But what is settling is that both states have dropped their unemployment rate in the last 6 months.
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