Outline the economic costs of unemployment, and outline and evaluate policies designed to correct for two different types of unemployment.

There are always some people who are unemployed in our community. This is because of the four different types of unemployment. These are frictional, seasonal, cyclical and structural. This essay will explore briefly over what the different types of unemployment are, then in depth, cyclical and structural unemployment will be analysed. This is to give an outline and to evaluate different policies designed to correct these two types of unemployment. The essay is then concluded with the economic effects that unemployment has on the economy.

One case of unemployment, knows as frictional unemployment, is voluntary. Frictionally unemployed workers have chosen to move from one job to another to seek better pay, or to look for better opportunities (Vinay, 2002). The other unemployment categories are involuntary, because people have been displaced from their job. Seasonal unemployment affects occupations such as fruit pickers, fishermen and shearers, where they are only employed during certa...