what are the different types of unemployment and how do they affect the economy?

Answer 1

Another responder defined in detail the four different types of unemployment (frictional, seasonal, cyclical, structural). In reality, these are just techical semantic differences. The Bureau of Labor Statistics just measures and tracks the Unemployment rate with a big U, and that is it.

Unemployment has multiple negative impact on the economy. Unemployment directly reduces personal income. This in turn reduces aggregate demand, and shrinks or puts downward pressure on the entire GDP and GDP growth. When you figure that personal consumption accouts for 2/3 of GDP, and personal consumption is heavily dependent on labor wage earnings; you can see how GDP can quickly take a hit when unemployment rate rises.

Also, the fiscal position of the U.S. Government takes a hit too. This is because with rising unemployment, the Government will raises much less tax revenues derived from personal income and FICA taxes. But, it's fiscal costs will go up associated with government programs that support the unemployed (unemployment benefits, Medicaid).

Hope this answer was helpful. If you need clarification, you are welcome to contact me through Answer communication.

Answer 2

The Different Types Of Unemployment

Answer 3

There are four types of unemployment in the business sense. Frictional unemployment is basically temporary joblessness while one is looking for a new job. This is natural in a good economy. Seasonal unemployment is joblessness because one's job is seasonal. Cyclic unemployment is joblessness because of reduced economic activity. Structural unemployment is joblessness because of a lack of skill to perform available jobs.

Unemployment basically is not good (unless it's frictional unemployment) because a very important factor of production, labor, is being wasted. With cyclical unemployment, the unemployment affects the economy by decreasing purchasing power in the consumer and thus leading to more lay-offs because of less profits.

Answer 4

Legitimate Unemployment and Unemployment due to Laziness. One is legitimate, the other is an unnecessary drain on economic resources.

Answer 5

I only know one type of unemployment :

I don't have a job and am therefore not making any money to subsist on.

That is all.