Economic Challenges

Unemployment

Unemployment Four types of unemployment Frictional unemployment Seasonal Unemployment Structural unemployment Cyclical unemployment

Frictional Unemployment - Time taken by people to find a job ( time in between jobs)

Seasonal Unemployment Industries shut down or slow down for a season.

Structural Unemployment Worker’s skills do not match the jobs that are available.

Cyclical Unemployment Unemployment that rises or falls according to the current economic situation.

Full Employment Level of employment reached when no cyclical unemployment exists.

Inflation A general increase in prices.

How does inflation affect purchasing power and income? Purchasing power: Your dollar buy less it did before. Income: You will have less money to counteract the inflation unless your wages rise to match.

Poverty Poverty can be caused by some of the following: Lack of education Location Racial or gender bias. Economic shifts Shifts in family structure