00:01
So here we're asked about the type of unemployment one needed is experiencing.
00:04
To do that, we need to know the kinds of unemployment.
00:07
So the most common one perhaps, or at least the one that we talk about the most, is cyclical unemployment, right? and that's from macroeconomic conditions.
00:16
So when the economy is in a recession or when the economy is in a boom, that's what we call the things that are driving cyclical unemployment.
00:26
So cyclical unemployment has nothing to do with the individual.
00:30
It has stuff to do only with the macroeconomic situation.
00:34
The second type of unemployment is frictional, right? and frictional is referring to, i guess, it's sort of the catch -all category, but it is sort of the basic problems.
00:52
At least that's how i think, tend to think of it.
00:56
For example, and it's the easiest to do this example, imagine that you just graduated, but haven't started the job, right? that's frictional unemployment.
01:11
Frictional unemployment is referring to frictions in the labor market, right? what you might call problems, things that are necessarily time consuming, right? for example, moved for family, and i am looking for a new job.
01:28
That's frictional unemployment, right? i had to move for personal reasons.
01:35
And because of my personal reasons, i am thinking about, i'm looking for a new job, right? and i haven't been able to find a new job immediately because labor markets don't clear instantaneously.
01:46
That's what you mean by frictional unemployment.
01:48
The third type is structural, right? and structural is doing to changing economic composition, right? so this is sort of your midwest rust belt story.
02:01
When the type of skills is changing in the economy, the type of skills that are demanded is changing in the economy...