ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Involuntary unemployment occurs when workers would be willing to work at the current wage, but they can’t find jobs. The types of unemployment are structural unemployment, frictional unemployment, cyclical unemployment, real-wage unemployment, and seasonal unemployment.

Detailed explanation-2: -An example of cyclical unemployment is when construction workers were laid off during the Great Recession following the financial crisis of 2008. With the housing market struggling, construction of new homes fell dramatically, leading to a rise in cyclical unemployment for construction workers.

Detailed explanation-3: -Frictional unemployment involves people transitioning between jobs; it has nothing to do with the economic cycle and is voluntary. Structural unemployment is a direct result of shifts in the economy, including changes in technology or declines in an industry.

Detailed explanation-4: -Seasonal unemployment. Frictional unemployment. Cyclical unemployment. Structural unemployment.