Types of unemployment

Unemployment is a macroeconomic problem that affects people and the economy as well. There are three types of unemployment as referenced by economists: Frictional, structural, and cyclical. Economists say that the economy is “fully employed” when there is only frictional and structural unemployment. In other words, full employment occurs when there is no cyclical unemployment. This article covers two other less common but important types of unemployment: Classical and seasonal unemployment.