Question

what are the three types of unemployment? unemployment is seen by some as undesirable. are all three types of unemployment undesirable? Explain

Answer 1

If we talk generally then unemployment are three types-

Frictional unemployment

Structural unemployment and

Cyclical unemployment

Frictional unemployment rises when a person try to find a new job or shift from his old job to new job

Structural unemployment arises due to the technological advancement which causes the mismatch of the supply of the workers in the market in the demand of the workers

Cyclical unemployment rises due to the business cycle up and down

Yes it is true that unemployment is seen as undesirable by some persons because it cannot be neglected upto certain level

For example up to a certain % structural unemployment and frictional unemployment cannot be ignored because in any economy every time people will move their from their old job to new job or if there is technological advancement then there can be lay off of the workers as well

Even the United States data says that up to 4% of unemployment is healthy for the economy