Use the worker's circumstances and the economy's condition to identify the unemployment type, then explain the specific mismatch, demand fall, job-search delay or seasonal pattern.
In 2020, some firms in Suriname, a South American country, stopped production. This was because the firms could not cover their variable costs, as well as some of their fixed costs. The reduction in the country's output resulted in a rise in its unemployment rate. The government used supply-side policy measures to reduce unemployment. In 2021, the number of firms in some markets fell again, but this time it was when output was rising.
Explain two types of unemployment.
Explain two types of unemployment.
Logical explanation which might include:
- frictional unemployment (1) workers in between jobs (1)
- structural unemployment (1) changes in demand and supply conditions / skills not matching vacancies / lack of labour mobility (1)
- cyclical / demand-deficient unemployment (1) lack of total demand / occurs during a recession (1)
4
Allow explanation of two types of frictional unemployment i.e. search, casual or seasonal and two types of structural unemployment i.e. regional and technological. Also allow voluntary and involuntary.
One mark each for each of two types identified and one mark each for each of two explanations.