8 Types of Unemployment: Understanding Each Type
What Is Unemployment?
Definition of Unemployment
- They weren’t employed during the week of the CPS measurement.
- They were available to work, except for temporary illness.
- They attempted to find a job during the four-week period that ended with the week of the survey, or they were temporarily laid off.
Effects of Unemployment
Unemployed Workers and Families
Understanding Unemployment Statistics
Significance of Unemployment Rates
Measures of Unemployment
- Number of employed people
- Number of unemployed people
- How people became unemployed
- How long people have been unemployed
- Unemployed people’s demographic information, such as gender, age, ethnicity, and education level
- Where unemployed people live
- Whether unemployment rates are increasing or decreasing
Types of Unemployment
1. Cyclical Unemployment
2. Frictional Unemployment
3. Structural Unemployment
4. Natural Unemployment
5. Long-Term Unemployment
6. Seasonal Unemployment
7. Classical Unemployment
- Visible underemployment. With visible underemployment, employees work part time despite their desire to work more hours. Underemployed people, such as office employees who can find only part-time roles, may work multiple jobs to earn the equivalent of a full-time salary.
- Invisible underemployment. When individuals who can’t find a job in their chosen field take a job that isn’t in line with their experience and skills, they represent invisible underemployment. Their work often pays less than a role that’s more in line with their background would pay. A person with an engineering degree working at a coffee shop is an example of invisible underemployment.
Ways of Combating Unemployment
Employee Tips for Combating Unemployment
Become an Entrepreneur
Ask Personal and Professional Contacts
Use Job Search Services
- gov — The federal government offers a help center with information such as unemployment resources, COVID-19 benefits, and hotline information.
- Best Job Search Websites — The Balance Careers reviews job sites to highlight the best.
- CareerOneStop — The U.S. Department of Labor offers tips for using online tools to make connections and research jobs.
- gov — The federal government provides unemployment information including links related to unemployment benefits, insurance coverage, workers’ compensation, and financial assistance.