Types of unemployment

• Frictional unemployment. This is the time between when a person voluntarily leaves a job and finds a new one.

• Seasonal unemployment. Some people become unemployed in the 'off season', e.g. fruit pickers become unemployed because they have no other skills.

• Hardcore unemployment. This occurs when employers refuse to employ people due to certain personal characteristics of the potential workers, such as having a criminal record or a drug addiction. 
• Cyclical unemployment. This term is based on the business cycle. J.M. Keynes believed a drop in the business cycle and, therefore, a drop in demand and production cause this type of unemployment. It is where aggregate demand falls. 
• Structural unemployment. This is where the structure of the industry changes, that is, the way goods and services are produced changes. This results in a mismatch between the skills of the existing workers and the skills required to do the job.