An update on the question of structural vs. cyclical unemployment, this time with respect to policy options for each. For background, see these previous posts: on how economists define or distinguish between structural and cyclical and a look at the situation in 2011. Time is short and specialization is efficient, so I'll quote Mark Thoma … Continue reading Structural vs. Cyclical Unemployment Revisited: Doing Nothing Is Not a Smart Option
So following up on my post on the types of unemployment, when unemployment is high, how do we know if it's due to structural or cyclical causes? The answer is important because it tells us what kind of policy actions to take. Do we need stimulus? (addresses cyclical), or do we need job-retraining, relocation, and … Continue reading Is Our High Unemployment Structural?
Economists classify unemployment into four types according to what caused the unemployment. If we assume the goal is "full employment" (never mind how we might define or measure "full" right now - there's mischief there), then what we're really saying is that our goal is for the economy to create an appropriate a job for every … Continue reading Types (Causes) of Unemployment
Mark Thoma explains the difference between cyclical, structural, and frictional unemployment: As I noted in a previous post, economists define three types of unemployment: frictional, structural, and cyclical: Frictional unemployment is defined as the unemployment that occurs because of people moving or changing occupations. Demographic change can also play a role in this type of … Continue reading Frictional, Structural, Cyclical Unemployment Defined