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Q. Show the Different kinds of unemployment?
All unemployed individuals are presumed to belong to exactly one of these categories so that if we sum unemployment from each category we would get the total unemployment. We define unemployment rate for the above categories for example we define the frictional unemployment rate as frictional unemployment divided by the total labor force and in the same way for the other categories.
Clearly it is often tough to determine exactly which category an unemployed individual belongs to and official measures of unemployment in each category don't exist.
Nevertheless, this classification is very convenient in economics. If unemployment increases in a certain city because of a firm relocating production, its structural unemployment that increases (originally, part of it is frictional), and if unemployment increases owing to a recession, it's the cyclical unemployment which has increased. Knowing what kind of unemployment is currently present is significant when considering what kind of measures to take to lower unemployment.
Figure: Different kinds of unemployment
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