Equilibrium Employment:
This type of unemployment happens when the labor market is at equilibrium meaning that jobs exist but people are either unwilling or unable to take the jobs that exist. Types of Occupations with Equilibrium Unemployment: Equilibrium employment happens when industries decline because of long term changes in the market. For example, the car industry has changed over the years. UK cars have decreased in demand, thus less workers. Some seasonal occupations are camp site workers, and some amusement parks. Possible Solutions to Solve This Unemployment: Frictional unemployment can be fixed by bringing more information about the jobs to the worker. It can also be fixed by adding expansionary monetary policy. During this stage, workers will quit their job, and go for a position with a company in the expansionary stage because, they feel more confident. |