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Different Types of Unemployment

What are the three different types of unemployment? I am saying they are:
1. Friction unemployment
2. Structural unemployment
3. Cyclical unemployment.

Which of these are serious concerns for an economy? What type of unemployment is caused by the recession?

Solution Preview

Okay, great. The good news is that these three are fairly easy to define. The three you have are basically 'short term adjustment' issues:

Frictional -
This is a temporary form of unemployment. It refers to the period of time when otherwise employable people are 'between jobs.' It really derives from the constant adjustment between jobs available and those applicants that are truly qualified for them. In some cases, it is when people are biding their time until higher paid (or more rewarding) jobs come about. Because of this, it is an eccentric form of unemployment.

Structural -
This concerns the nature of the economy ...

Solution Summary

Three different types of unemployment are discussed. Whether these are the serious concerns for an economy is determined.