Types of Unemployment

Unemployment is a temporary phase of life where a person does not have a job or lacks opportunities to earn from employment owing to multiple reasons such as layoffs. Unemployment is one of the yardsticks to measure the economic stability of a country. Governments and agencies across the World infuse the system with multiple programs and schemes to improve the unemployment situation in their geography.

In order to address this issue, unemployment has been broken down into many categories(based on multiple factors)  for research work. One of the most widely accepted division of unemployment is based on the its economic impact. Let us explore the different types of unemployment based on economic principles.

Types of Unemployment

Frictional Unemployment

This type of unemployment occurs as workers(who left existing job voluntarily) take some time to move to another job. Some workers resign after finding a job while a large swathe of workers quit and look for jobs. There will be a time lag in finding a new job that matches their skill/experience. Some of them might even be contemplating on taking up a course/college degree to better their chances of getting a better job profile.

From an economic point of view, Frictional unemployment is not really a concern as it happens in smaller numbers and extends for a short period. Rapid advancement in technology and govt. policies over the last two decades have taken away the negative limelight from this category of unemployment. Fresh college graduates looking for employment also fall in this category.

Structural Unemployment

This can occur due to multiple correlated reasons such as less demand for skills/education in the job marketplace. More workers in the market with certain skillset than the jobs in demand or when wages do not match the market standard also fall in this category. Technological advancement and finding cheaper employment from other geographies are some of the reasons that lead to structural employment.

Seasonal employment also falls under this category since the skills a worker possesses are in demand only for a definite period. These workers remain unemployed for a definite part of the year owing to nature of job. Example: Lifeguard at a beach holiday resort. Structural employment is quite a serious concern since it can be active for a long period of time.

Cyclical Unemployment

Massive Job losses during down phases of economy is very common and during stable upward economic growth, millions of jobs are created owing to optimism in sentiments. Cyclical unemployment is the term used to described the ups and downs associated with business cycles in an economy. It is quite a natural occurrence for jobs to fall during recession due to fall in demands and similarly, they are expected to rise during stable economic growth.

Economic stability has a direct say in Cyclical employment which can be the cause for creation or destruction of  millions of employment opportunities.

Voluntary and Involuntary Employment

As the names suggest, this basic classification of employment is in terms of the “reason” for separation from the job. If a worker quit voluntarily to pursue better opportunities/aspirations, it is termed as Voluntary unemployment. On the other hand, if a worker was laid off by the employer, it is known as Involuntary unemployment.

Unemployment Insurance for Jobless Workers

In US and major countries across the World, workers who are unemployed due to involuntary reasons such as layoffs are eligible to receive a weekly monetary compensation disbursed by labor department of the respective states which is computed on the basis of last drawn salary. In all the 50 states plus D.C, you can receive up to 26 weeks of unemployment insurance.

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  1. I applied for unemployment in New Mexico because I wasn’t getting my full-time hours and my checks were never correct I was constantly fighting with the company now I’ve exhausted my unemployment benefits and they sent me a questionnaire about my work and it says adjuctation what does that mean.. I am extremely frightened

    1. Amal,

      Adjudication is like an “Appeals” process. You may be asked to present facts and paperwork relating to your claim. If everything is fine with your claim, please face it with confidence. You’ll be given a sound hearing.

    1. Carolyn,

      If this is your initial claim, it will take a min. of 7-10 business days for the determination to be made. Please reach out to the Unemployment Office for more.

    1. David,

      Please let us know the state you’re writing from. You can also visit the Unemployment Office’s official website for phone numbers.

    2. My initial unemployment benefits run out next month. How long does it take for the extension to be determined? As I havent found suitable work. And have met all requirements to find employment. Filed in TX. If I qualify for benefits do I automatically qualify for an extention?

      1. Le,

        The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.


    1. James,

      The E.U.C(Emergency Unemployment Compensation) remains expired. There is no extension available. Please inquire further with the labor authorities in your state by calling them.

  3. I am Disabled I have had several surgeries on my lower spine. I found that I was not able to male it die to Bills became overwhelming.
    I got a Job with S3 security in Tallahassee f. Where I found out that all company rules were online and They said I needed to find them and opine to them. I told them I was with Dyslexia and I. could not find them. and 2. if I could have would not have been able to remember them. this is one of my life time Disabilities. I asked to be explained the Rules but was not. For 6 mounts I was praised by the places I worked. Then recently the Sargent told me to help a student locked out there Apartment. So I did. Next day he wanted to write me up for doing what he told me to do. I told him No I would not sign a demerit that would follow me around for ever Paper work does that! I all ways did the best I could. The Captain had made a open threat that he would do all he could to take badges and make us look bad to Fla. AG. I had hurt my ankle and am getting over it. They say the wishes of Property manager was reason I was Terminated with not following post orders. Not signing the forms excepting the wright ups. With just having Epidurals to ease the Spinal pain and them being 1/2 done I had attitude to being lied on by my Sargent. When I was told to do a job. I am kinda Glad I am out of there. No Supervision just the Sargent larking in shadows waiting to wright me up to make him look good so it seemed. I had to use my own Ins. to go get help for my leg. Now I don’t know if I can get Unemployment due to what they say I did after suitability doing the best I could to keep the Complex and Students as safe that I could.

    1. William,

      UI benefits are offered to claimants who’re able and available for work. Please call the Unemployment Office for clarification. Hope you get well soon!

  4. I have been trying to fill out unemployment application on line, but it will not let me put my social security # in the spaces

  5. From 1/2018 to 10/2018 I worked for a Merriville-based organization but I live in Illinois. The employer told me I couldn’t claim unemployment from Indiana because of my Illinois residency. Yesterday, I learned that I should have been able to. Can I claim those benefits now? I was unemployed from 10/19/2018 until 8/24/2019.

  6. I am trying to file a new unemployment claim on line and the link says it cant be reached. Are you experiencing any web site problems?

  7. I RECIEVED A”MY DOCUMENT” DATED 8/26/2019-TODAY STATING I DID NOT SEARCH FOR 2 JOBS LAST WEEK…BUT,1- 1/2 DAYS AGO, EARLY SUNDAY MORNING, JUST LIKE I HAVE FOR 9-WEEKS,I DID WHAT THEM SYSTEM TOLD ME TO DO. I FILED MY WEEKLY BENEFITS TELLING Y’ALL THAT ON THURSDAY 8/23/2019 I BEGAN WORKING AGAIN. I TOLD ON MY CLAIMING WEEKLY BENEFIT FORM THAT I ALSO WORKED FRIDAY. I TOLD THE AMOUNT OF MONEY I EARNED PER-HOUR, I TOLD THAT I I worked 16hrs for the week ending 8/24/19,i gave the total amount,and i told i have not got 10 cents of the money yet,and $12.75×16 is not more than $326.00. I just got home to learn payment is being held,once again i’m being punish for an unemployment crime i did’nt commit. Four hours of interviews last week led to me getting hired, that led to 16hrs of work,that was reported within the rules. I did everything right.

    1. Please register with PAcareerlink and attend the RESEA orientation as required and take the necessary documents with you. Then
      begin an active job search. The state wants to see this activity and is done in order to receive your benefit compensation.

      Take care

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