Unemployment is the situation of people who want to work but cannot find a job. It is measured as a percentage of the labor force. The labor force includes those working and those actively looking. People who have given up looking are not counted, which makes the official rate an imperfect measure.

Economists distinguish several types. Frictional unemployment happens when people are between jobs or entering the workforce. Structural unemployment occurs when skills do not match available jobs. Cyclical unemployment rises during recessions and falls during expansions. Each type calls for different remedies.

High unemployment hurts individuals and communities. It brings financial strain, health problems, and social unrest. It also wastes productive capacity. Governments respond with job training, public works, and stimulus spending. Central banks cut interest rates. The results vary. Some policies work better than others, and timing matters.

Types of unemployment

• Frictional
• Structural
• Cyclical
• Seasonal
• Hidden or disguised