Unemployment is one of the major economics problems. People who are considered unemployed are those who are seeking work or laid off for more then a week. There are many different reasons why a person could be unemployed. Three of those causes are cyclical, structural and seasonal unemployment. The government tries to find solutions in order to reduce unemployment by making up policies.
Cyclical unemployment is one of the causes that creates unemployment. When a person is cyclically unemployed, it means that the income is limited to the economic state and there are more jobs when economy is well however when it’s not the number of jobs available decrease. Also when people have less spending money it creates many cutbacks and loss of jobs. Therefore, this form of unemployment is usually temporary. When there is an economic growth, cyclical unemployment reduces.
Structural unemployment is another cause that creates unemployment. As time goes on, consumer’s demand changes, which causes a growth in one industry, a decrease in another or it may lead to a complete shut down of a industry. And even though jobs will increase in growing industry, they will decrease or disappear in another for example, Atlantic Canada where demand for ship building was no longer needed. Thus structural unemployment causes regional unemployment because certain areas are unable to attract new industries when their old ones are shut down.
Seasonal unemployment mostly depends on the climate and therefore varies in the regions of Canada. In the winter time industries like fishing, construction, and tourism struggle in certain regions. However, demand in some industries like snow cleaning will increase. The other examples where people could be seasonally unemployed are farming, lumbering and etc. People who work in those industries are usually employed for 6 month and unemployed for the other six when there industry is off season.