Underemployment

When individuals are employed but are working less hours than they would like or in

positions below their skill level

Frictional Unemployment

Short term unemployment that occurs when people are between jobs, or they have left education are are awaiting their first job.

Structural Unemployment

Occurs when there is a permanent fall in the demand for a particular type of labour.

Seasonal Unemployment

When the demand for labour in certain industries falls at certain times of the year.

Cyclical Unemployment

Results from a insufficient level of aggregate demand. (and stickiness of wages) Cyclical

unemployment increases as the economy moves deeper into recession

Involuntary Unemployment

People who are prepared to work at the going wage rate but who cannot find a job.

Voluntary Unemployment

People who have no job because the wage rate is not sufficiently high, but will look for

work once wage rates increase.

Total Labour Force

Potential amount of people who would work within the working ages of 18 and the national age of retirement, usually 65.