Economics Part B

Unemployment

Meaning of Term Unemployment

A situation where adults (in the 15-65 age group) are willing and able to work for a salary but are unable to obtain work. These people are referred to as being unemployed or not in work. Adults who are not currently seeking work, such as: students or soldiers, are not considered as being unemployed.

It is usual for unemployment to be divided into 3 sub-groups, according to the reason for the unemployment.

Each sub-group is the result of a different cause.

The sub-groups are: frictional unemployment, structural unemployment and cyclical unemployment (these concepts will be explained below).

Unemployment576Unemployment