Answer to Question #329157 in Macroeconomics for Tshitshi

Question

Differentiate between seasonal unemployment and frictional unemployment and provide relevant example of each

Answer 1

Frictional unemployment is when workers change jobs and are unemployed while waiting for a new job. A worker may already have a job lined up, but they may not be able to start for a few months. If they’re unemployed for those few months, it’s just a little friction between one job ending and one beginning. It’s not long-term unemployment. Maybe a worker is leaving a job, but they know they can get another one very easily. Say, a high school kid who is leaving a job at McDonald’s but knows he could easily get a job at the mall. He just has to go out and get it. There’s that small gap of unemployment between being employed and being unemployed. There’s just a little bit of friction as maybe your finances have to adjust.

Seasonal unemployment is when seasonal cycles reduce the need for certain jobs. You may say, “Oh, this sounds like cyclical.” However, it’s not the same. Seasonal has to do with cycles based on seasons. Cyclical has to do with cycles based on natural business cycles and the cycle of the economy. Seasonal unemployment could be people that maybe work in a farming or ranching community. There are certain times of the year when you’re going to be harvesting, certain times of the year when you’re going to be planting, and certain times of the year when it is going to be waiting for things to happen. There are jobs that come up just around certain times of the year. For instance, around Christmas, you’re going to have people who will cut down, ship, and sell Christmas trees. You’re going to have people being Santa in the mall. At Easter, you’ll have people being the Easter Bunny in the mall. There are certain jobs that come up at certain times of the year, or just during certain seasons. Those seasonal cycles will reduce the need for certain jobs at certain times of the year.