Unemployment is a situation where a person actively searches for employment but is unable to find work.
| cyclical | structural | frictional |
|---|---|---|
| a increase in unemployment when the economy slows down during a business cycle | long-lasting unemployment that comes about due to shifts in an economy | Entering the workforce for the first time |
| demand for goods and services decreases, which leads to a lack of jobs | unemployment that results from a mismatch between labor supply and demand. | Moving to a new city for work |
| Cyclical unemployment makes it hard for people to find jobs and there are less roles available | someone getting laid off because more people are using something else | Quitting a job to pursue another |