Unemployment is the number of people of working age who are without job.
Causes of unemployment:
Frictional Unemployment – where people become unemployed between jobs
Demand Deficient Unemployment – where AD is less than AS
Technological Unemployment – caused where people are put out of work by changes in technology
Seasonal Unemployment – caused by the seasonal nature of some types of employment – e.g. holiday resorts
Real Wage or Classical Unemployment – caused by wage rates being held above market clearing levels
Structural Unemployment – caused by changes to the structure of industry in the economy – e.g. the decline of the coal, iron and steel industries