The working age population of a country can be subdivided into two categories: the employed and the unemployed.
This article explains and discusses different types of unemployment and provides a snapshot of Fiji’s unemployment history.
What is Unemployment?
Unemployment refers to when someone who is willing, able to work and is actively seeking employment, does not have a job.
Types of Unemployment
There are four types of unemployment that can exist in an economy at a particular time, namely cyclical, frictional, structural and seasonal unemployment.
The first type of unemployment occurs when a country is experiencing a recession or a downturn in economic activity. During this time, there is a decline in total production and demand in an economy. As a result, employers may need fewer employees and in some cases, firms may even close down. Workers that are laid off during a recession or downturn in economic activity are classed as cyclically unemployed.