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CAIE IGCSE Economics 4.6.3 Causes Types of Unemployment Questions

Investigate unemployment types in CAIE IGCSE Economics, connecting job search, changing skill requirements and weak total demand to examples and labour-market data.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Identify frictional, structural, cyclical and seasonal unemployment, distinguishing job-search delays from skills mismatch and recession-related weak total demand.
  • Infer structural unemployment from labour-market tables showing sectoral shifts and rising long-term unemployment, even when total employment increases.
  • Analyse why unemployment may persist when workers lack suitable skills or mobility, or when a recession leaves too few vacancies, contrasting these causes with short-term job search.

CAIE IGCSE Economics 4.6.3 Causes Types of Unemployment Questions question 1

[Maximum number: 2]

In 2022, more than a quarter of a million workers, including doctors, left Sri Lanka to work in other countries. This was largely due to economic problems, including an inflation rate of 50% and a concern that unemployment might rise. The Sri Lankan Government increased direct taxation. It also encouraged some public sector workers to work abroad temporarily. People who work abroad often send money home to relatives.

Identify two types of unemployment.

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