Sep 12, 2018 in Analysis

Types of Unemployment Essay


The unemployment rate determines the economical development of any country. The aim of this research paper is to determine three types of the unemployment. It will be explained why sometimes the unemployment is desirable for the economy of the country. It will be showed that it is not possible to eliminate the unemployment rate down to zero percent. 

Types of Unemployment

Unemployment is a socio-economic phenomenon, suggesting the absence of the work in people that make up the economically active population. There are three types of unemployment as follows: frictional, structural and cyclical. The high rate of unemployment is a negative process that reflects the position of the country’s economy. However, it is not possible to completely eliminate the unemployment in the country. Moreover, sometimes the unemployment rate is desirable. 

Frictional unemployment occurs when people decide to change their current job position to another one. It is possible to replace the old job with a new one at once. However, many workers lose their jobs before they find something new that will fit them. Structural unemployment occurs when the job market have less job opportunities then workers available. It happens when workers with particular skills are not demanded. Cyclical unemployment occurs in accordance with the economical situation in the country. It reaches its highest rate during the recession or business decline, when the demand on goods falls.   

The unemployment is the result of lack of information, mobility barriers, demographic change and other consequences of imperfect markets. For these reasons, it is impossible to lower the unemployment rate down to zero, but only to reduce it to a label defined by imperfect markets. That is why the Internet could only serve as a tool to help find a new job for little amount of workers who would like to switch the job. It could not completely eliminate frictional unemployment. In some way, the unemployment could be desirable for human resource department. It gives them an opportunity to choose more qualified workers from available labor market. The frictional unemployment could also be as a desirable one, because it means that the work market of the country is filled with opportunities for skillful workers. It means that the country is growing in many aspects of its development.    


  1. Webb, T. (2012). “Three types of unemployment: Cyclical, Frictional and Structural”. Retrieved December 19, 2012 from


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