Unformatted text preview: unemployment caused by recurring changes in hiring due to changes in weather conditions ● Frictional unemployment: unemployment caused by the normal search time requires by workers with marketable skills who are changing jobs, entering, or re-entering the labor force. ● Structural unemployment: caused by a mismatch of the skills of workers out of work and the skills required for existing job opportunities. ● Cyclical unemployment: unemployment caused by the lack of jobs during a recession. 3. Explain full employment situation in which an economy operates at an unemployment rate equal to the sum of the frictional and structural unemployment rates. It is also called the natural rate of unemployment and it changes over time, but today it is considered to be about 5...
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- Spring '11
- Unemployment, unemployment rates