ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cyclical unemployment occurs with changes in economic activity over the business cycle. During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work.

Detailed explanation-2: -Unemployment is the result of workers losing their jobs, which can lead to an increase in cyclical unemployment due to an economic downturn, but if unemployment persists for many years, it can lead to structural unemployment.

Detailed explanation-3: -Frictional unemployment happens when a person leaves one position to find a better job, or when someone outside of the labor force begins looking for work. Say you quit your current job and take two weeks before starting a new one. In that situation, you were technically unemployed for two weeks of the year.

Detailed explanation-4: -Seasonal jobs are limited to a certain time period, sometimes leaving people who work in those jobs without employment after the season ends. Seasonal unemployment is the result of the decreased demand in labor that occurs at each season’s end, making the seasonal rate more predictable than other types of unemployment.