Cyclical Unemployment: Cyclical unemployment refers to joblessness caused by downturns in business cycles, such as recessions. It occurs when there is a decrease in overall economic activity and businesses struggle to maintain their workforce.
Frictional Unemployment: Frictional unemployment happens when individuals are temporarily unemployed while searching for new jobs or transitioning between jobs. It is often considered a natural part of the labor market as people move between different positions.
Structural Unemployment: Structural unemployment occurs due to long-term changes in the structure of an economy, such as technological advancements or shifts in consumer preferences. Workers may become unemployed because their skills are no longer in high demand or because their industry has declined.