Unemployment can be sorted into four types:
- Frictional Unemployment: The period when people are switching jobs.
- Seasonal Unemployment: Due to different timing of the year, for example, a skiing instructor.
- Cyclical Unemployment: Due to business cycle where periods of slow economic growth will lead to lower demand for workers.
- Structural Unemployment: Due to a mismatch of skills, or outdated skills that are no longer required or redundant in society.