Types of unemployment:
1. Cyclical – tied directly to the business cycle… high during recessionary conditions, lower during periods of expansion
2. Frictional – result of normal labour turnover. Part of a normal, healthy economy
3. Structural – when workers are unable to find jobs because they lack the necessary skills, do not live where the jobs are available, or choose not to work at that wage rate. Structural unemployment tends to last longer than frictional unemployment and is part of a normal, healthy economy