00:01
Hey guys, and welcome to another economics example where we're going to be talking some more about unemployment.
00:07
And specifically for this example, we're going to be talking about the three main types of unemployment and, you know, try and describe what types of unemployment these examples are depicting.
00:23
So, as you may have already learned, the three types of unemployment are cyclical, frictional, and structural.
00:29
And just so we're all on the same page, i'll just quickly go over what they are.
00:35
So the first one, cyclical unemployment, is related to unemployment that follows the contraction of business cycles.
00:46
So, you know, if your economy is in a downturn, people are going to be laid off.
00:52
And those people laid off are a part of the cyclical unemployment.
00:56
The next one, frictional unemployment is when somebody just leaves their old job and hasn't found a new one yet.
01:04
So a lot of times this can be voluntary, but not always.
01:13
Can also be workers getting fired and that sort of thing.
01:18
And then the last one, structural unemployment, is when there's a mismatch of skills.
01:31
So say if you're this happens a lot with immigration.
01:37
If say you're like a you have your doctorate in, you have your md, your medical doctorate license.
01:45
And you're working at a 7 -eleven.
01:47
That would be structural unemployment.
01:52
So with the three types out of the way, let's go through these, how many examples are there? these five examples, i think, yeah.
01:58
Let's go through these five examples and name what kind of unemployment is going on.
02:04
So, first one, the construction worker is laid off because there is less building going on because of a recession, say.
02:16
Well, as we just discussed, this would be cyclical.
02:20
So we'll put a c instead of writing the whole word, c for cyclical, f for frictional, and s for structural.
02:28
So here for b, a coal miner is laid off because of a shutdown due to regulations.
02:35
This is just frictional.
02:38
He left his job.
02:39
He hasn't found a new one.
02:40
It doesn't have to be voluntary...