UNEMPLOYMENT Unemployment occurs when workers are without a job and actively seeking for one. Active seeking includes such behaviors as reading want ads, contacting employers, and using the services of the Public Employment Agencies.

Why Should We be Concerned about Unemployment? Economic Effects: The opportunity cost of Unemployment is measured in terms of lost GDP; and Lower standards of living of the unemployed Non-Economic Effects: The human suffering and misery that are associated with unemployment; and The increase in social problems such as crime

Types of Unemployment Cyclical Unemployment Frictional Unemployment the component of unemployment that accompanies fluctuations in real GDP Frictional Unemployment the part of unemployment associated with the normal labor turnover. Structural Unemployment the part of unemployment that results from the mismatch of skills and jobs.