- 10 Marks
Question
High unemployment rate is a challenge in any economy. Attempts have been made to classify unemployment so as to resolve it. State and explain briefly FIVE categories of unemployment.
Answer
i. Transitional unemployment: This happens when an employee has left one job in order to start another. The time gap between leaving a job and starting another is transitional unemployment. For example, a teacher might leave a job at one school in order to start at another in three months’ time. During the three months, unless one of the schools pays him, he is transitionally unemployed.
ii. Frictional unemployment: This is short-term unemployment when individuals are dismissed from their work or rendered redundant.
iii. Structural unemployment: This arises from a significant change in the structure of the economy which causes a decline and collapse of industries that used to be major employers.
iv. Technological unemployment: This occurs when technological changes dispense with some categories of workers.
v. Regional unemployment: This occurs in a particular region of the country. Levels of unemployment can vary from one region to another, especially when there is low mobility of labour. For instance, where individuals are reluctant to move to other regions to find work.
- Topic: The Business Environment
- Series: MAY 2018
- Uploader: Theophilus