This happens with cyclical unemployment, as macroeconomic forces cause microeconomic unemployment which can boomerang back and exacerbate these macroeconomic forces.
12.
The fact that aggregate demand can be raised to deal with this problem suggests that this problem is instead one of cyclical unemployment.
13.
Structural unemployment is one of several major categories of unemployment distinguished by economists, including frictional unemployment, cyclical unemployment, involuntary unemployment, and classical unemployment.
14.
While temporary changes in overall demand for labor cause cyclical unemployment, structural unemployment can be caused by temporary changes in demand from different industries.
15.
They argued that the nature of cyclical unemployment meant that any new workhouse built would be empty for most of the year and thus a waste of money.
16.
Cyclical unemployment is due to variation in the economic cycle and is responsive to stimulus measures, while structural unemployment is unrelated to the economic cycle and is unresponsive to stimulus measures.
17.
But Europeans also need to raise the rate of economic growth, he said, which " requires vigorously fighting recessionary forces when they arise because cyclical unemployment can harden into structural unemployment ."
18.
With cyclical unemployment, the number of unemployed workers exceeds the number of job vacancies, so that even if full employment were attained and all open jobs were filled, some workers would still remain unemployed.
19.
Okun's law states that a one point increase in the cyclical unemployment rate is associated with two percentage points of negative growth in real GDP . The relationship varies depending on the country and time period under consideration.
20.
Structural unemployment may also be encouraged to rise by persistent cyclical unemployment : if an economy suffers from long-lasting low aggregate demand, it means that many of the unemployed become disheartened, while their skills ( including job-searching skills ) become " rusty " and obsolete.
