Explain the three main types of unemployment experienced within an economy. Provide at least one example demonstrating each type of unemployment. in 3-5 sentences
The three main types of unemployment experienced within an economy are frictional, structural, and cyclical unemployment. Frictional unemployment occurs when individuals are temporarily between jobs, such as recent college graduates searching for their first job. Structural unemployment is caused by shifts in the economy, like changes in technology or consumer preferences, resulting in workers being displaced from their current jobs, for example, workers in the coal industry losing their jobs due to a shift towards renewable energy sources. Cyclical unemployment is linked to fluctuations in the business cycle, such as during economic recessions when businesses are forced to lay off workers due to decreased demand for goods and services.
