1. TYPES OF UNEMPLOYMENT 1) VOLUNTARY UNEMPLOYMENT
2) INVOLUNTARY UNEMPLOYMENT
Frictional
Structural
Cyclical
NATURAL RATE OF UNEMPLOYMENT: The unavoidable level of unemployment that exists in the labour force without any work at a particular point of time. This is expressed a percentage of the labour force

2. VOLUNTARY UNEMPLOYMENT
“People in this category choose not to work at the existing wage rate. They will enter the workforce only when the wages increase.”

3. INVOLUNTARY UNEMPLOYMENT
FRICTIONAL UNEMPLOYMENT:
Unemployment that consists of those between jobs, seasonal workers currently between season, and school leavers who have not yet found their first job.
STRUCTURAL UNEMPLOYMENT
The unemployment that arises from technological advances, which causes an imbalance between the skills of workers and the requirements of the employers. Usually happens when the final goods have become obsolete –e.g. Typewriters
CYCLICAL UNEMPLOYMENT
Unemployment caused by a downturn in economic activity and is generally due to lack of demand for goods & services in the economy.